Pharma Q3 Preview - Improved Margins, Product Launches To Drive The Show; Divis, Glenmark DRChoksey's Top Pick

Glenmark Pharma, Laurus Labs and Divis Laboratories are expected to post strong margin expansion among our coverage due to low base from the previous year, ramp-up of newly established facilities and price recovery in the Generic API segment respectively..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 Q3 FY25E, we expect double-digit YoY revenue growth from the pharma companies in our coverage. The revenue is expected to grow 10.8% YoY (+1.1% sequentially), driven by growth in domestic business and expansion in the US business.Ebitda is expected to grow at a robust rate of 20.4% YoY and 0.9% sequentially. Ebitda margin is expected to expand 198 bps YoY (flat QoQ), led by favorable product mix, increased focus on complex products. Adjusted PAT is expected to grow at 22.9% YoY and 1.3% sequentially. Adj. PAT margin is expected to expand 161 bps YoY and stay flat QoQ.We expect positive YoY revenue growth across coverage companies notably Supriya Lifescience (expansion into regulated markets), Divis Laboratories (strong growth in the Custom Synthesis segment) and Glenmark Pharma (strengthening its market position in Europe). Glenmark Pharma, Laurus Labs and Divis Laboratories are expected to post strong margin expansion among our coverage due to low base from the previous year, ramp-up of newly established facilities and price recovery in the Generic API segment respectively. Aurobindo Pharma and Granules India are expected to post weak margin growth among our coverage due to increase in employee expenses, other expenses, and challenges in the API segment, led by price erosion and high customer inventory levels respectively..Click on the attachment to read the full report:.Financials Q3 Results Preview - What's In Store For SFBs, NBFCs, HFCs & Ratings; Read Yes Securities' Analysis.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 Q3 Preview - Improved Margins, Product Launches To Drive The Show; Divis, Glenmark DRChoksey's Top Pick

DRChoksey expects double-digit YoY revenue growth from its pharma coverage companies.

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