Pharma Stocks
Outlook for the week – 27 to 30.01.2015
( www.rupeedesk.in )
Stocks of major pharmaceutical
companies are seen trading up next week due to build-up of
positive momentum in most stocks
in the sector this week. The view for next week in the pharma
space is positive, and buy on
dips strategy is recommended.
The Street will also be looking
out for Oct-Dec earnings of key pharmaceutical majors, including
Ranbaxy Laboratories Ltd and Dr
Reddy's Laboratories Ltd. We expect an 11% year-on-year
growth in Ranbaxy's Oct-Dec
sales, led by $100 mln revenues from generic of Diovan during its
exclusivity period. With Diovan
exclusivity, the company's reported EBITDA is expected to be
25.7%. The company, which is in
process of being merged into its rival Sun Pharmaceutical
Industries Ltd, will report its
Oct-Dec earnings on Tuesday.
For Dr Reddy's Laboratories,
which will report its earnings for the quarter ended December on
Wednesday, strong US sales driven
by launch of generics of Valcyte and Rapamune to
significantly mitigate the impact
of the volatility in the Russian currency. Stocks of Hyderabadbased
Dr Reddy's are seen outperforming
peers as it has just bounced from its support level. We expect stocks of Lupin
Ltd to underperform next week with a sideways movement due to reduced momentum.
