Pharma Q1 Results Review - Strong Overall Show; U.S. Visibility Improves: Nirmal Bang

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Key Points For Q1 FY24, our pharma coverage universe has posted robust ~19% YoY revenue growth on the back of volume ramp-up, new launches (especially Revlimid) and stabilising pricing pressure in the U.S. base business. Ebitda margin improved by a healthy ~500 basis points YoY amid normalising cost inflation and stabilizing price erosion.Among the large caps, Zydus Lifesciences Ltd., Mankind Pharma Ltd. and Dr. Reddy’s Laboratories Ltd. reported strong all-round performance, with double-digit revenue growth and robust margin improvement. In the midcap and smallcap space, Eris Lifesciences Ltd.(consolidation of acquisitions) and Natco Pharma Ltd. (Revlimid boost) were the best performers while Indoco Remedies Ltd. reported tepid performance due to weak domestic sales, plant-related regulatory issues and deferment of milestone income.For FY24, domestic growth is expected to be in low double digits while US market growth would remain robust with normalising price erosion in the base business, continuous ramp-up in Revlimid and new launches. Margins will also improve amid normalizing raw matrial and freight costs, diminishing U.S. price erosion and a better mix. However, U.S. Food and drug administration inspections remain an overhang and price erosion in the U.S. is expected to increase once supplies normalize. Therefore, our focus remains on companies that are focusing on the branded business and have the least exposure to U.S. generics. Sun Pharmaceutical Industries Ltd. and Cipla Ltd. are our top picks in the large caps while JB Chemicals and Pharmaceuticals Ltd., Ajanta Pharma Ltd. and Eris Lifesciences are our preferred picks in the midcap and smallcap space..Click on the attachment to read the full report:.Consumer Durable Q1 Results Review - Margins To Improve In Ensuing Quarters: Dolat Capital.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Pharma Q1 Results Review - Strong Overall Show; U.S. Visibility Improves: Nirmal Bang

Revlimid and price stabilisation drive U.S. growth; India business affected by seasonality and NLEM.

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