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Informist, Friday, Feb. 7, 2025

MUMBAI – Pharmaceutical stocks may extend their recovery to the next week as investor sentiment may be boosted by recent strong earnings performance of several companies driven by healthy sales in the domestic market, analysts said. However, gains may be capped for shares of some pharmaceutical companies as weak sales in the US market reported by these firms may weigh. Further, the ongoing depreciation of the rupee may also attract investors towards this sector, which has a significant business in overseas markets, they said.

This week, the Nifty Pharma index gained 3.5% and outperformed all other sectoral indices. It closed at 22077 points Friday, with 17 out of 20 constituents ending the week with gains. Shares of Abbott India Ltd. and Natco Pharma Ltd. gained 15.1% and 11.7%, respectively, this week and became the top performers in the Nifty Pharma index.

Lupin Ltd., Astrazeneca Pharma India Ltd., Natco Pharma, Suven Pharmaceuticals Ltd., Ipca Laboratories Ltd., Concord Biotech Ltd., Glenmark Pharmaceuticals Ltd., Glaxosmithkline Pharmaceuticals Ltd., Sun Pharma Advanced Research Co. Ltd., and Neuland Laboratories Ltd. are the major players set to announce their Oct-Dec earnings next week.

Of these, Glaxosmithkline Pharmaceuticals is expected to report a fourfold increase in net profit for the December quarter. Lupin, Natco Pharma, Ipca Laboratories, and Concord Biotech are expected to post a growth in the bottom line in double digits for the quarter. Glenmark Pharmaceuticals is expected to report a consolidated net profit for the quarter compared with a net loss in the year-ago period.

Export-oriented pharma companies which have a significant market in the US could benefit from the ongoing depreciation of the rupee against the dollar as drug manufacturers can sell their products at lower prices in key markets such as the US, thereby leading to increased demand, analysts said. The rupee hit a fresh all-time low of 87.5825 a dollar on Thursday, and closed at 87.4250 on Friday. 

TOP HEADLINES

* Caplin Point Oct-Dec consol PAT rises 18.6% YoY to INR 1.39 billion
* Analyst Concall: Aurobindo Pharma China unit to begin exports to Europe Apr
* Aurobindo Pharma to make all GLP-1 pdts, global mkt plan in next 2 qtrs
* Earnings Review: High costs drag Aurobindo Pharma consol PAT down 10% YoY
* Akums Drugs Oct-Dec PAT falls 18.3% QoQ to INR 411.68 million
* Dr Reddy's arm to commercialise Shanghai Henlius's daratumumab in US, Europe
* Emcure Pharma Oct-Dec consol PAT rises over 35% YoY to INR 1.54 billion
* Analyst Concall: Zydus Life to up capex by 20-30% for scaling up business
* On Novartis suit, HC bars co from selling pdts as Novitas till Jul 14
* Earnings Review: Zydus Life posts higher-than-expected results in Oct-Dec
* IPO Alert: Amanta Healthcare refiles DRHP with SEBI for fresh issue
* Caplin Point arm gets US FDA nod for procainamide hydrochloride injection
* Lupin gets tentative approval from US FDA for HIV drug
* JB Chem Oct-Dec PAT rises over 22% on year to INR 1.56 billion
* Alkem Labs launches Kojiglo serum in India to manage hyperpigmentation
* Sun Pharma, Philogen complete patient enrolment for FIBROSARC trial
* Eris Life Oct-Dec consol PAT falls over 18% YoY to INR 836 million
* Gland Pharma Oct-Dec consol sales down over 10% YoY, PAT rises 6.7%
* Analyst Concall: Divi's Labs says "sky is the limit" for GLP-1 opportunity
* Sun Pharma appoints Aalok Shanghvi as chief operating officer
* Cipla to invest INR 4.14 bln in arm Cipla Medpro South Africa Proprietary
* Alembic Pharma Oct-Dec consol PAT falls 23.3% YoY to INR 1.38 billion
* Earnings Review: Divi's Labs PAT up 66% on year at INR 5.94 bln, beats view
* US FDA completes inspection of Lupin's New Jersey unit with no observations
* Hyderabad central tax dept imposes INR 1.84-bln penalty on Dr. Reddy's Labs

Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:

End

US$1 = INR 87.42

Reported by Alina Geogy

Edited by Akul Nishant Akhoury

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