Q2 earnings: Analyst expects this pharma stock to lead the pack
The pharmaceutical sector is poised for an exciting quarter, with Lupin taking the lead, Sun Pharma navigating its challenges, and other major players such as Mankind Pharma, Divi’s Laboratories, and Cipla all showing promise. The industry appears well-positioned to capitalize on growing opportunities and maintain its growth trajectory in the coming months.
As the pharmaceutical sector gears up for the second quarter, industry experts are weighing in on which companies are likely to shine. Vishal Manchanda, a Pharma Analyst at Systematix Group, believes that Lupin is poised to be the standout performer in the upcoming quarter, setting the stage for strong quarter-on-quarter (QoQ) results.
Manchanda said, "Lupin should be the one that should do the best, and the stock price is also potentially reflecting that."
While Lupin takes the lead, Sun Pharmaceutical Industries is facing challenges in the United States pharmaceutical market. Nevertheless, Manchanda sees a silver lining, noting that Sun Pharma is faring well in the Indian market.
"From an India growth perspective," he predicts, "Sun Pharma should outpace all other peers in this space."
On the domestic front, Manchanda expects Mankind Pharma to excel. Mankind Pharma has established a strong presence in the Indian pharmaceutical market and has been expanding its offerings in the United States as well.
However, Divi’s Laboratories presents a unique scenario. The company's year-on-year (YoY) performance may appear weak due to its past high-performance levels. Yet, on a QoQ basis, Divi’s Laboratories should demonstrate improvement, driven by growth in products supplied to an innovator. Manchanda commented, "My sense is that the street is expecting higher growth from Divi’s Laboratories."
Cipla is another company that Manchanda has his eyes on. He envisions multiple launches from Cipla, and if these launches materialize as anticipated, the company could deliver a pleasant surprise in terms of growth. "Cipla potentially can surprise in terms of the upside that it can show," he mentioned.
A recent CNBC-TV18 analysis has estimated a robust quarter for pharmaceutical companies, with revenues and EBITDA growth projected to be around 12-15% year-on-year (YoY). This anticipated growth will be fueled by sales of key drugs in the United States, including cancer medications, and will be further aided by easing cost pressures and currency tailwinds.
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(Edited by : Shweta Mungre)
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