Pharma Stocks Outlook for the week – 11 to 15.05.2015
Stocks
of major pharmaceutical companies are expected to trade in line with broader
market
next week, except those that are announcing results in the following week.
Stocks
of Lupin Ltd, Dr Reddy's Laboratories Ltd, Cadila Healthcare Ltd and Torrent
Pharmaceuticals
Ltd are seen trading in line with the expectation of the earnings and later
the
announcement of results for Jan-Mar.
Some
stocks may show positive movement after continued negative momentum in the
past
few weeks. Dr Reddy's will announce its Jan-Mar results on Tuesday, while Lupin
will
detail its earnings on Wednesday. Cadila Health and Torrent Pharma will
announce
their
Jan-Mar earnings on Friday.
Domestic
growth for Lupin will be at 20% on year, while US business will de-grow by
0.6%.
Dr Reddy's revenue is likely to grow 8.3% on year. On the other hand, European
region
is expected to show growth of 5% on year and Russia would witness de-growth of
15%.
Margins are expected to improve by 180 basis points on year due to higher gross
margins.
