Pharma Stocks Outlook for the week - 05 to 09.May.2014
Stocks
of frontline pharmaceutical companies are likely to trade in a range next week.
Stocks
of Glenmark Pharmaceutical Ltd and Lupin Ltd are expected to rise in the build
up
to their Jan-Mar earnings.
The
pharmaceutical sector, along with the broader indices, is expected to trade in
a rangebound
manner.
Glenmark and Lupin seem to be the outperforming stocks next week, in
the
build up to their results.
The
Street also expects Lupin, which will report its earnings on Wednesday, to post
Jan-
Mar
net revenues of 31.27 bln rupees, up 23% on-year. Jigar Mehta of Waves
Strategies
said
he saw near term resistance for Lupin at 1,020 rupees, and support at 980
rupees.
For
Mumbai-based Glenmark Pharmaceuticals, we expect a Jan-Mar net profit of 1.98
bln
rupees, up 18% on-year. Margins are likely to improve QoQ (quarter-on-quarter)
owing
to milestone income of $4 mln from Forest Labs in 4QFY14 (Jan-Mar). US base
sales
are likely to pick up marginally because the competitor has moved out of the
hydrocortisone
butyrate (Dermatology) market in January 2014,"
Glenmark
will report its Jan-Mar earnings on Thursday. Troubled drug maker Ranbaxy
Laboratories
Ltd will also report its earnings on May 9, we expect the company's Jan-Mar
profit
after tax to grow 18% on-year due to rise in revenues.
However,
see Ranbaxy's stocks as the underperformer during the next week and expect
some correction in its prices(www.rupeedesk.in)
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