Hunt for Value: Mapping pharma valuations

Pharmaceutical companies' headline numbers in Q3 of FY21 were in line to better than estimates. CLSA, in fact, says that 60 percent of the companies under their coverage reported better than expected EBITDA margins in Q3.

Analysing the two major markets for pharma companies—US and India, the US grew year-on-year indicating normalising trends post COVID-19. Sun Pharma and Cipla were led by their specialty sales portfolio. India sustained its momentum despite a high base with Cipla, Glenmark aided by their COVID-19 portfolio growth in Q3.

Overall the earnings have been upgraded for the second consecutive quarter for pharmaceutical companies and analysts expect this momentum to continue.