Pharma - 'Buy' Ipca, 'Add' Lupin, Avoid Dr. Reddy's Among Others Says HDFC Securities Ahead Of Q3 Results

India’s pharma market saw a steady growth of 7% in Q3 FY25 (as per IQVIA), led by steady growth of 10% in the chronic segment, which was partly offset by ~6% growth in the acute segment (as per IQVIA).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..HDFC Securities Institutional Equities.The India pharma and healthcare sector is expected to see steady growth in Q3 FY25E. We project sales/Ebitda growth of 11%/13% YoY for our coverage universe. Our assumptions are:pharma coverage will see 10% YoY sales growth, driven by a 13% YoY increase in the India business, offset by flattish (QoQ) US sales (+5% YoY). Moderate price erosion and steady traction in key products (gSpiriva, gMyrbetriq) and the specialty scale-up will partly balance the negligible sales from gRevlimid. Ebitda margins for the pharma segment are expected to expand by 50 bps YoY, driven by growth in key markets (India and US) and lower input costs (expanding gross margin by ~167 bps YoY). This will be partly offset by higher costs, including an expected increase in R&D spending and rise in freight costs (+134% YoY and -34% QoQ). The hospital business is projected to grow by 19% YoY, supported by steady occupancy/ average revenue per occupied bed and M&As (Max Healthcare). Ebitda margin expansion is expected for Apollo Hospital due to reduced spending on Apollo 24/7, while Max Healthcare may see a margin decline due to integration impact of acquired hospitals and drag from new hospital (at Dwarka). The diagnostics segment is anticipated to deliver 11% YoY sales growth, driven by patient/test volume increases and steady margins. The retail pharmacy business (Medplus and Apollo Pharmacy) is expected to see steady growth. .Overall, we foresee strong performances from Lupin, Torrent, IPCA and Apollo Hospital, while Aurobindo and Max Healthcare may show more muted results..Click on the attachment to read the full report:.Cement Q3 Preview- Recovery On The Horizon Says Systematix; Bets On ACC, UltraTech, Sagar Cements As Top Picks.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.

Pharma - 'Buy' Ipca, 'Add' Lupin, Avoid Dr. Reddy's Among Others Says HDFC Securities Ahead Of Q3 Results

Pharma, Healthcare Q3 Results Preview - The brokerage foresees strong performances from Lupin, Torrent, Ipca and Apollo Hospital, while Aurobindo and Max Healthcare may show more muted results.

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