Pharma Stocks Outlook for the week – 26 to 30.10.2015
Seen
down next week on profit booking; results key
( www.rupeedesk.in )
Frontline
pharmaceutical companies are seen losing value on the Street next week with
investors
booking gains made during the sector's up-move over the past few weeks. The
CNX
Pharma index has risen from 12300-levels to 13200-levels over the last one
month
and
has neared its mid-term resistance level. Even as the broader sector is
expected to
trade
with a negative bias next week, some counters such as those of Strides Arcolab,
Alembic
Pharmaceuticals, Glenmark Pharmaceuticals and Dr Reddy's Laboratories are
seen
to witness anticipatory trading based on their Jul-Sep earnings that will be
reported
next
week.
Bengaluru-based
Strides Arcolab to report a net profit for Jul-Sep at 380 mln rupees, 25%
lower
from the year-ago period, while its earnings before interest, taxes,
depreciation and
amortisation
are seen improving 3.1% on year to 648 mln rupees. We expect a stable
performance
on the back of continued traction in existing products. We expect its
margins
to improve QoQ (quarter-on-quarter). Strides Arcolab, which will report its
results
on Tuesday.
Mumbai-based
Glenmark Pharmaceuticals, whose shares which currently are trading in a
narrow
range, will report its earnings on Thursday. Expecting, the company to report
net
profit
of 19.52 bln rupees, 18% higher from the last year. Growth in (Glenmark's) US
generics
business likely to improve on the back of product approvals, but the gains are
expected
to be partially offset by adverse currency movements in Russia, CIS
(Commonwealth
of Independent States) and RoW (rest of world) markets.
India's
second largest listed drug maker by sales Dr Reddy's Laboratories, which will
also
report
its Jul-Sep earnings on Thursday, is seen reporting a 10% year-on-year rise in
its
net
profit to 63.15 bln rupees.