Hello doston, ek aur fundamental analysis special podcast mein aapka swagat hain!
Doston, aapne notice kiya hoga ke after the arrival of Covid, pharma sector as a whole has been delivering pretty good returns.
While all the other segments in the economy have had to face some sort of decrease in demand and production capacity, the demand for pharma sector products has gone through the roof.
This is obvious, in a way, because everything else can stop during a pandemic except the need for medical attention and medicines.
Today we will perform a deep dive into the performance of the pharma industry in India and discuss a few players jinhe aap apne long-term portfolio mein add kar sakte hai.
So, let’s begin. Sabse pehle an overview of the industry
Market experts expect the pharma sector to report higher growth for the first quarter of FY22. This growth is likely to be driven by the generic drugs and the API segment.
Domestic brands ka business is also expected to do well on the back of higher sales of Covid-19 products like Remedesiver, Sputnik-V, and Favipiravir, etc.
According to market research reports, DR. Reddy and Lupin’s revenue could rise by 11.5% and 6% on a year-on-year basis. Analysts are keen on companies with a prominent presence in the US markets. However, even in the US, price competition between brands over generic drugs is likely to moderate sales revenue.
Analysts are expecting sales of domestic drug brands to continue rising in case a third wave Covid wave does descend in the country.
For companies that have a larger presence in the USA, the reduction in Covid-19 cases can marginally dent sales, however, market experts believe that new launches are likely to make up for the fall in sales.
Experts ka yeh bhi kehna hai ke diagnostics companies will also benefit from the high demand of Covid-19 tests during lockdown. Iske alawa travel regulations ki vajah se many people who know for a fact that they do not have Covid still have to undergo RT-PCR tests. Such travel requirements are also likely to boost revenue of diagnostic companies. Experts suggest that Covid tests will contribute to 16-17% of revenues for diagnostic companies.
Aaiye ab companies ki taraf nazar delta hai.
Let us start with Biocon
Analysts expect Biocon’s revenue to grow by 13.4% to Rs 1,895 crore because of strong growth in the contract research segment. Additionally, this company is dominant in the biosimilar segment and the company is expected to grow by 2% on YoY basis to Rs 706 crore in the same space. At the same time, Biocon’s EBITDA margins are expected to decline by 80 basis points to 23.9% as the company is allocating larger amounts to R&D expenses. Analysts are also bullish on Biocon’s bottomline expecting it to grow by 21% to Rs 180 crore.
Dr Reddy pe ek nazar daalein?
Analysts believe that in the latest quarter, Dr Reddy’s topline, yaane ke sales revenue, is likely to grow by 10.9% on a year-on-year basis to Rs 4,911 crore. Itni strong growth will be on the basis of a 42% rise in domestic formulations which grew to Rs 886.8 crore under the spell of the lockdown. US business mein bhi growth expected hai up to Rs 1,815 crore, although this will be a marginal growth of 5%. On the other hand, EBITDA margin ghat sakti hai on account of higher expenditure. Net profit is also likely to grow to Rs 627 crore.
Teesri company jise aaj hum analyse karenge hai Alembic pharma
Alembic pharma ka fourth quarter of FY22 saw sales growth of 6.1% on a year-on-year basis to Rs 1,280 crore. However, the strong growth in sales in domestic markets was offset by a close to 18% decline in US sales to Rs 475 crore on a year-on-year basis.
Domestic formulations ki sales qareeban 5% se badhi to Rs 358 crore and adjusted PAT grew 6.5% YoY to Rs 251 crore.
Going forward, analysts are expecting revenue to decline 4% on a YoY basis to Rs 1,287 crore as the old pattern of decline in US sales repeats itself. EBITDA is expected to contract to Rs 341 crore on account of higher expenditure on R&D. Experts believe that there will be a reduction in net profit by 20.3% YoY to Rs 240 crore
Chauthi company that we will be looking at today is Sun Pharma
Sun pharma kai saloon (years) se pharma segment mein ek major player rahi hai. It is India’s top drug maker and the world’s fifth largest generic drugs maker company. Q4FY21 saw the company’s revenue increase by 4.4% in which domestic drug formulations contributed to a growth of 12.9% on a year-on-year basis and the rest of the world formulations contributed to a 6.3% growth.
Company ka EBITDA margin growth has been quite impressive. It expanded by 24.4% sequentially and by 36.8% on a year-on-year basis to Rs 2,059 crore. Sun pharma yeh kar payi because of cutbacks in advertisement and discretionary expenses. Along with this, it has a smart product mix that is working in the company’s favour. Adjusted PAT grew by a whopping 96.6% to Rs 1,578 crore.
Biosimilars, API and emerging markets mein Sun pharma continues to be a major player and market experts are bullish on this company in the long run.
Aaj ke liye bas itna hi.
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