Buy Lupin; Hold Dr. Reddy's; Add Cipla, Divi's Lists DRChoksey Among Other Stocks Ahead Of Pharma Q4 Results

Currently, Nifty Pharma 1-year forward PE is 28.0x which is close to a 3-year average. This suggests that the sector is currently fairly valued, however, DRChoksey expects upside potential may be stock-specific, driven by execution on margin improvement, differentiated product launches, or geographic diversification..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..DRChoksey Report.In Q4 FY25E, we expect double-digit YoY revenue growth from the pharma companies in our coverage. The revenue is expected to grow 11.5% YoY (+1.4% sequentially), driven by new product launches across geographies, expansion in domestic formulations, and continued momentum in emerging markets and Europe. Notable companies which post strong revenue growth are as follows, Divis Laboratories (sustained double-digit growth in the Custom Synthesis segment), Supriya Lifescience (focus on launching new products in niche therapy areas), and Sun Pharma (Odomzo, Ilumya growth and India launches driving momentum.)Ebitda is expected to grow at a robust rate of 16.1% YoY and decline 1.5% sequentially. Ebitda margin is expected to expand 99 bps YoY (-72 bps QoQ), led by a shift toward higher-margin therapies, and improved product mix, with a higher share of specialty, complex generics, and branded formulations across key geographies. Laurus Labs, Lupin, and Sun Pharma are expected to post strong margin expansion among our coverage supported by late-stage projects, a better product mix including complex generics, and higher-margin speciality drugs respectively. Alembic Pharma and Zydus Lifesciences are expected to post weak margin growth among our coverage due to an increase in operating expenses..Click on the attachment to read the full report:.Cera Sanitaryware's Demand Remains Tepid; Hopeful Of Pick-Up In FY26, Says ICICI Securities, Maintaining 'Buy'.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Buy Lupin; Hold Dr. Reddy's; Add Cipla, Divi's Lists DRChoksey Among Other Stocks Ahead Of Pharma Q4 Results

Pharma Q4 Results Preview: Based on the structural growth drivers, DRChoksey's top picks are Laurus Labs Supriya Lifescience, and Lupin.

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