Pharma Stocks Outlook for the week – 08 to 12.02.2016
(Earnings
to drive sector, Lupin seen positive)
( www.rupeedesk.in )
Earnings
for the December quarter of major pharmaceutical companies
are
likely to decide the trend for the sector's stocks next week, with Lupin
likely
to maintaining its positive momentum after reporting a higher-thanexpected
consolidated
net profit.
While
gains in Lupin's stock are likely to be capped at 1,880 rupees, it
is
expected to be in positive territory for the week. Pharmaceutical
companies
reporting their earnings next week are Sun Pharmaceutical
Industries,
Cipla, Dr Reddy's Laboratories, Aurobindo Pharma,
Wockhardt
and GlaxoSmithKline Pharmaceuticals.
The
sector's biggest company, Sun Pharmaceutical, is seen reporting an
18%
decline in consolidated net profit at 11.71 bln rupees. The company
will
report its earnings on Feb 12.
We
expect remediation process in Halol plant to continue to impact core
sales
growth and EBITDA margin in Q3FY16E (Oct-Dec. The company's
employee
cost is also expected to be higher due to one-off compensation
costs
to outgoing employees of Ranbaxy.
On
Wednesday, Cipla is seen reporting a 23% rise in consolidated net
profit
at 4.04 bln rupees. We expect strong numbers, as decline in
Nexium
(generic) remains limited.