Pharma Stocks Outlook for the week – 20 to 22.10.2014
( www.rupeedesk.in )
Stocks
of pharmaceutical companies are expected to show stock-specific movement
next
week based on Jul-Sep earnings on lack of sector specific triggers. There are
no
sectoral triggers for pharma space, but it could also depend on how broad
markets
react to the state election results in the truncated weekend.
Alembic
Pharmaceutical Ltd will report its earnings for the quarter ended September
on
Monday and Biocon Ltd and Indoco Remedies Ltd will report their earnings on
Monday
and Tuesday, respectively. Revenue growth (of Alembic Pharma) is
expected
to be to driven by strong US sales and domestic specialty segment.
EBITDA
expected to be at 19.7% in Q2FY15, +62/+13 bps YoY/QoQ.
For
Bengaluru-based Biocon, the Street sees the company reporting a 23% on-year
rise in
profit after tax to 1.17 bln rupees on a standalone basis. The company's
sales
are likely to grow 6% year-on-year to 7.7 bln rupees. The stock trades at
21.6x
FY15 estimates and 17.7x FY16 estimates earnings. Option values for the future
include separate listing of Syngene and outlicencing of research molecules.
