Pharma Stocks Outlook for the week – 27 to 31.07.2015
(Negative
bias next week)
( www.rupeedesk.in )
Stocks
of heavyweight pharmaceutical companies such as Sun Pharmaceutical Industries
Ltd and Lupin Ltd, which saw a negative run this week, are expected to pull
down the sector next week. The stock of India's largest drug maker Sun
Pharmaceutical Industries saw a fall of over 11% his week
after the company said its sales for the financial year 2015-16 (Apr-Mar) could
stay flat or decline over the last year due to several charges incurred by the
company on remediation of its Halol
unit and integration with Ranbaxy.
Another
Mumbai-based drug company Lupin Ltd, which disappointed the Street with its Apr-Jun earnings
on Thursday, is expected to underperform its peers next week. Another mid-cap
pharma stock
that will be in focus next week is Bengaluru-based Biocon Ltd. The stock will
be keenly tracked
by the markets with the initial public offering of the company's subsidiary
Syngene International
opening Monday.
We
expect the company to deliver superior performance due to its strong presence
in biopharma and insulin space and unlocking the value of Syngene
International.
