GOLDEN RULES FOR TRADING

Pharma Stocks Outlook for the week – 01 to 05.02.2016 Seen continuing uptrend; Lupin earnings eyed

Pharma Stocks Outlook for the week – 01 to 05.02.2016
Seen continuing uptrend; Lupin earnings eyed

Earnings of Lupin, Pfizer and Cadila Healthcare will be the key triggers for their
stocks next week, with the underlying bias for most pharmaceutical stocks expected to
be positive after declining for three consecutive weeks. While Cadila Healthcare and
Lupin report their Oct-Dec earnings next Friday, Pfizer will be reporting its results on
Wednesday. Consolidated net sales of Lupin are expected to grow 6% on year on
account of price hike in Fortamet generic and better traction in generics of Niaspan
and Celebrex.

The company's consolidated net profit, though, is seen falling 19% to 4.9 bln rupees
due to weak operational performance, as per the estimates. Cadila Healthcare is seen
reporting a 5% decline in its consolidated net profit at 3.7 bln rupees. Yesterday, the
stock ended up 1.7% at 304.20 rupees. This week saw a near 11% rise in the shares of
Sun Pharmaceutical Industries, India's largest pharmaceutical company with a market
share of 8.8% as of December. Yesterday, a report in The Economic Times said that
Sun Pharmaceutical has put on block some Ranbaxy brands which are low priority in
its domestic market strategy or ones which may overlap with its own products.
Yesterday, the stock ended up 4.6% at 872.95 rupees on the report.