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Stocks of major pharmaceutical companies are seen in a range next week with an upward bias, thanks to positive earnings expectations among investors. According to earnings before interest, tax, depreciation, and amortisation of pharmaceutical companies are likely to remain steady on year, while some expansion is expected on quarter on the back of launches and recovery from discretionary costs reported in the previous quarter.
Among large capital pharmaceutical stocks, Dr Reddy's Laboratories, Lupin, and Sun Pharmaceuticals Industries are seen outperforming this quarter. We continue to see some pressure on Cadila's earnings YoY, as margins improve by 200bps on quarter. Lupin would see continued ramp-up in US from Tricor and Suprax, while it would realise loss on gross margins from weakness in Yen. Cipla would continue to benefit from currency while margins are expected to decline QoQ due to lower domestic sales. Ranbaxy's reported earnings are expected to decline from higher base of Lipitor FTF (first-to-file) sales, however, core margins would improve sequentially.
Stocks of major pharmaceutical companies are seen in a range next week with an upward bias, thanks to positive earnings expectations among investors. According to earnings before interest, tax, depreciation, and amortisation of pharmaceutical companies are likely to remain steady on year, while some expansion is expected on quarter on the back of launches and recovery from discretionary costs reported in the previous quarter.
Among large capital pharmaceutical stocks, Dr Reddy's Laboratories, Lupin, and Sun Pharmaceuticals Industries are seen outperforming this quarter. We continue to see some pressure on Cadila's earnings YoY, as margins improve by 200bps on quarter. Lupin would see continued ramp-up in US from Tricor and Suprax, while it would realise loss on gross margins from weakness in Yen. Cipla would continue to benefit from currency while margins are expected to decline QoQ due to lower domestic sales. Ranbaxy's reported earnings are expected to decline from higher base of Lipitor FTF (first-to-file) sales, however, core margins would improve sequentially.
