5 Stocks to Watch Out for Amid the Omicron Outbreak

5.0

05 Jan, 2022

8 min read

1458 Views

icon
Keep a watch on these stocks once the new Omicron version appears. Read on to know more!

According to preliminary research, this new Omicron version is both faster and more contagious than the Delta type. Furthermore, existing vaccines may be less effective against the new variety, albeit this has not been scientifically proven. The new variation has injected uncertainty just as India was recuperating from the effects of the second wave. GDP statistics for the July-September quarter of the fiscal year 2022 was released just last week, showing an increase of 8.4%. After two quarters of contraction last year, this is the fourth straight quarter of positive growth.

Analysts anticipate that India will retain its position as the world's fastest growing economy until the financial year 2023, assuming all limitations are repealed and growth continues to accelerate. However, as a result of the additional strain, the government may be obliged to reinstate the limits if things spiral out of hand. Due to reduced activity, all of the core industries may be impacted, resulting in slower growth. However, there are a few industries that are more resistant to another closure.

Stocks to watch:

  • Cipla

Cipla is a multinational pharmaceutical corporation with operations in over 80 countries and 46 manufacturing facilities that produce over 1,500 medicines. Generics and pharmaceuticals in important therapeutic categories make up its product portfolio. Cipla is one of India's leading pharmaceutical firms, as well as the country's largest supplier to emerging countries.

It released seven medications as part of its Covid-19 line during the pandemic. Drugs, sanitisers, and antigen and antibody testing kits are among them. Despite the pandemic, it formed a number of agreements to commercialize cancer, biosimilars, and metabolic disorders products.

Cipla's revenue increased by 12% year on year in the fiscal year 2021, owing to respiratory unlocking in the United States and their Covid portfolio. Cipla's earnings before interest, taxes, and depreciation margin increased by more than 350 basis points to 22.5 percent from 18.9 percent over the same period. Margin expansion was aided by lower expenses as a result of cost-cutting initiatives and reduced on-ground operations as a result of lockdown.

 
  • Dr. Lal Pathlabs

Dr Lal Pathlabs is one of India's leading diagnostic chains. It has 3,705 locations that offer over 5,000 diagnostic tests, associated healthcare tests, and services. During the pandemic, the business increased its digital and physical reach in order to improve testing. Despite the pandemic, the corporation expanded in the fiscal year 2021, adding 15 labs, 600 collection centres, and 2,200 pickup points.

Dr Lal Pathlabs' revenue increased by 18.9% in the fiscal year 2021, compared to 10.6% rise in the fiscal year 2020. The increase in revenue was fueled by a resurgence in non-Covid revenue. For the fiscal year 2021, the EBITDA margin was 29.3 percent, compared to 27.5 percent the previous year. Increased expenditures in logistics and information and technology infrastructure resulted in modest margin growth.

Despite higher costs, the company's net profit increased by 30.3 percent year over year. The net profit margin increased to 18.8 percent from 17.1 percent the prior year. Because there are so many unorganized competitors in the diagnostic industry, organized firms like Dr Lal Pathlabs have a better chance of gaining a significant market share.

  • Alkem Laboratories

In terms of market share, Alkem Laboratories is the sixth largest pharmaceutical firm in India. It has 20 production and R&D sites in India and the United States. It also exports to over 40 different countries. There are over 800 brands in the company's product portfolio. Twelve of these brands have yearly sales in excess of $1 billion.

The company's activities were hampered slightly during the lockdown. During the unlocking phase, though, it recovered quickly. Alkem Labs revenues increased by 6.2 percent in the fiscal year 2021, compared to 13.4 percent the previous year. The company's expansion was slowed by a reduction in acute treatment prescription medicine sales in India. However, their overseas business was the main driver of revenue growth.

For the fiscal year 2021, the EBITDA margin is 21.9 percent. The margin increased from 17.72 percent the year before. The increase in margins is primarily attributable to fewer marketing and travel expenses as a result of the lockdown.

  • Thyrocare Technologies

Thyrocare is a pan-India diagnostic chain with over 279 tests and 79 test profiles to diagnose a wide range of illnesses. It runs its centralized processing laboratory 24 hours a day, 7 days a week to meet the needs of its customers. To ensure quick processing, the corporation also has regional processing laboratories in major cities.

Thyrocare operates a pan-India collecting network, which is backed up by a logistics network and IT infrastructure. The corporation built zonal processing laboratories for testing and other sophisticated tests during the pandemic. However, due to the lockdown, some of the company's collection centres were forced to close completely.

  • Morepen Labs

Morepen Labs is a pharmaceutical firm based in India that produces APIs, generic and branded formulations, as well as home health and diagnostic devices. Its goods are exported to more than 80 countries, and it is the market leader in the production of certain APIs.

The company's sales increased by 39.6% in the fiscal year 2021, compared to 11.7 percent the previous year. Diagnostics and API revenue grew at a faster rate than the rest of the company. In the current fiscal year, the corporation kept its expenses at the same level as the previous year. This resulted in a 67 percent increase in EBITDA year over year and a 1.9 percent increase in EBITDA margin.

The company's net profit increased by 189 percent year over year, compared to a 16 percent increase the prior year. In the fiscal year 2020, the net profit margin was 8%, compared to 4% in the previous year. Despite the pandemic, the company's varied product portfolio has allowed it to grow revenues. It intends to expand its activities at the same time in order to take advantage of the increased demand for improved healthcare.

Wrapping Up

The healthcare and diagnostic industries are just two of several that are anticipated to withstand another shutdown. Of course, there could be a short-term impact if fears grow and businesses must adjust their plans to deal with them. FMCG, packaging, and eCommerce industries may all be able to weather the storm.

The pandemic has altered the way businesses operate. If you want to invest right now, look for companies that can take advantage of economic shifts to boost their long-term growth potential. Make no rash moves or attempt to time the market. Instead, once short-term volatility subsides, seek to stay involved for a longer time horizon. In a nutshell, Omicron is nothing to be terrified of. If things deteriorate, you will have a fantastic opportunity to invest in equities.

How would you rate this blog?

Comments (0)

Add Comment

Related Blogs

  • icon

    Success Story of Vijay Kedia

    21 Oct, 2021

    8 min read

    READ MORE
  • icon

    Stock Trading Bot

    03 Nov, 2021

    7 min read

    READ MORE
  • icon

    Top 10 Most Inspirational...

    27 Apr, 2022

    7 min read

    READ MORE
  • icon

    Futures Options Strategy Guide

    19 Jan, 2022

    8 min read

    READ MORE
  • icon

    ​​Dhirubhai Ambani’s Success Story

    07 Mar, 2022

    7 min read

    READ MORE
  • icon

    LIC IPO: Benefits for Policyholders

    18 Feb, 2022

    7 min read

    READ MORE
  • icon

    10 Day Trading Strategies...

    28 Dec, 2021

    4 min read

    READ MORE
  • icon

    Sundar Pichai: Success...

    31 Mar, 2022

    6 min read

    READ MORE
  • icon

    What is Guerrilla Trading?

    01 Nov, 2021

    7 min read

    READ MORE
  • icon

    Basics of Algorithmic...

    21 Feb, 2022

    7 min read

    READ MORE
  • icon

    ​​Sugar Stocks Down as Sensex Falls

    29 Oct, 2021

    7 min read

    READ MORE
  • icon

    Nykaa Success Story -...

    22 Dec, 2021

    8 min read

    READ MORE
  • icon

    How Does Bitcoin Mining Work

    21 Jan, 2022

    7 min read

    READ MORE
  • icon

    What is Pre-Market...

    10 Feb, 2022

    6 min read

    READ MORE
  • icon

    Taxation on Mutual Funds

    04 Oct, 2021

    6 min read

    READ MORE
  • icon

    The Success Story of Jack...

    22 Oct, 2021

    5 min read

    READ MORE
  • icon

    Top 5 IPOs of 2021

    01 Feb, 2022

    6 min read

    READ MORE
  • icon

    How to Create Your Own...

    25 Apr, 2022

    8 min read

    READ MORE
  • icon

    Why Gold Rate is...

    13 May, 2022

    5 min read

    READ MORE
  • icon

    Raamdeo Agrawal: How...

    13 Jan, 2022

    10 min read

    READ MORE
  • icon

    Nirmala Sitharaman’s Success Story

    26 Mar, 2022

    5 min read

    READ MORE
  • icon

    Top 5 eco-friendly cryptocurrencies

    21 Dec, 2021

    9 min read

    READ MORE
  • icon

    Long-Term Investments

    28 Jan, 2022

    7 min read

    READ MORE
  • icon

    Byju’s IPO Plans

    06 Oct, 2021

    5 min read

    READ MORE
  • icon

    LIC Seeks to Appoint CFO

    13 Oct, 2021

    6 min read

    READ MORE
  • icon

    Russia vs Ukraine War:...

    10 Mar, 2022

    7 min read

    READ MORE
  • icon

    Ratan Tata's Youngest...

    15 May, 2022

    4 min read

    READ MORE
  • icon

    IPO Advantages and Disadvantages

    03 Oct, 2021

    7 min read

    READ MORE
  • icon

    Welfare Loss of Taxation

    28 Oct, 2021

    7 min read

    READ MORE
  • icon

    Exploring Ed-Tech Giant...

    02 Mar, 2022

    8 min read

    READ MORE
  • icon

    Taxation of Permanent...

    02 Dec, 2021

    7 min read

    READ MORE
  • icon

    Investing in Cryptocurrency

    06 Apr, 2022

    7 min read

    READ MORE
  • icon

    Crypto Ban in India?

    25 Jan, 2022

    6 min read

    READ MORE
  • icon

    10 Ways to Profit in a Bear Market

    30 Nov, 2021

    8 min read

    READ MORE
  • icon

    Ashneer Grover Biography -...

    28 Feb, 2022

    5 min read

    READ MORE
  • icon

    Lenskart Startup Story:...

    29 Mar, 2022

    6 min read

    READ MORE
  • icon

    Top 6 Types of Trading in...

    05 May, 2022

    7 min read

    READ MORE
  • icon

    Investors Walk Away from...

    27 Oct, 2021

    7 min read

    READ MORE
  • icon

    Taxation Rules for Bond Investors

    03 Jan, 2022

    4 min read

    READ MORE
  • icon

    Blue Chips Fuel Record

    25 Oct, 2021

    6 min read

    READ MORE
  • icon

    Top 4 Biggest Common Crypto Scam

    21 May, 2022

    8 min read

    READ MORE
  • icon

    What Is Double Taxation?

    11 Jan, 2022

    7 min read

    READ MORE
  • icon

    An Introduction to Trading...

    10 Nov, 2021

    7 min read

    READ MORE
  • icon

    SEBI revises risk...

    07 Dec, 2021

    8 min read

    READ MORE
  • icon

    Foreign Investment Funds...

    02 Feb, 2022

    6 min read

    READ MORE
  • icon

    A Beginners Guide To...

    02 May, 2022

    7 min read

    READ MORE
  • icon

    ​​Dr APJ Abdul Kalam:...

    14 Apr, 2022

    5 min read

    READ MORE
  • icon

    India’s top 10 favourite...

    22 Dec, 2021

    8 min read

    READ MORE
  • icon

    LIC IPO: All we Know So Far

    05 Oct, 2021

    7 min read

    READ MORE
  • icon

    IRCTC Stock and Share Split

    03 Dec, 2021

    7 min read

    READ MORE
  • icon

    Upcoming IPO in Nov-2021

    08 Nov, 2021

    8 min read

    READ MORE
  • icon

    LIC IPO: Expected Date, Price, DRHP

    18 Feb, 2022

    7 min read

    READ MORE
  • icon

    Is Google a Good Investment?

    11 Nov, 2021

    8 min read

    READ MORE
  • icon

    Stocks to Watch: Reliance...

    29 Dec, 2021

    5 min read

    READ MORE
  • icon

    How To Use a Moving...

    07 May, 2022

    6 min read

    READ MORE
  • icon

    Paytm IPO

    08 Nov, 2021

    7 min read

    READ MORE
  • icon

    Deadweight Loss Of Taxation

    31 Jan, 2022

    7 min read

    READ MORE
  • icon

    Tax on Cryptocurrency

    04 Apr, 2022

    6 min read

    READ MORE
  • icon

    Invesco drags Zee to NCLT

    06 Dec, 2021

    8 min read

    READ MORE
  • icon

    What Happens to Bitcoin...

    14 Feb, 2022

    6 min read

    READ MORE
  • icon

    The Future Of...

    16 Feb, 2022

    8 min read

    READ MORE
  • icon

    Taxation in 2022:...

    11 Apr, 2022

    7 min read

    READ MORE
  • icon

    Shiv Khera | Every Success...

    21 Apr, 2022

    5 min read

    READ MORE
  • icon

    Preference Shares:...

    17 Mar, 2022

    6 min read

    READ MORE
  • icon

    Gold Bond Investment in India

    07 Oct, 2021

    6 min read

    READ MORE
  • icon

    Environmental Impact of...

    09 Nov, 2021

    7 min read

    READ MORE
  • icon

    Exploring top Retirement...

    08 Oct, 2021

    7 min read

    READ MORE
  • icon

    Understanding Different...

    09 Mar, 2022

    8 min read

    READ MORE
  • icon

    Cryptocurrency Insurance,...

    08 Nov, 2021

    6 min read

    READ MORE
  • icon

    Double Taxation Hangs On...

    01 Dec, 2021

    8 min read

    READ MORE
  • icon

    Income Tax in India -...

    02 Oct, 2021

    7 min read

    READ MORE
  • icon

    Capital Gains Tax

    23 Mar, 2022

    5 min read

    READ MORE
  • icon

    What is Cryptocurrency?

    09 Oct, 2021

    7 min read

    READ MORE
  • icon

    LIC IPO Details: Should...

    18 Feb, 2022

    6 min read

    READ MORE
  • icon

    What Are the Risks of...

    19 May, 2022

    7 min read

    READ MORE
  • icon

    Should You Invest in...

    10 Oct, 2021

    8 min read

    READ MORE
  • icon

    Understanding Taxation on...

    26 Oct, 2021

    7 min read

    READ MORE

Translate the power of knowledge into action. Open Free* Demat Account

* T&C Apply

Latest Blog

Ready To Trade? Start with

angleone_itrade_img angleone_itrade_img

Subscribe to #SmartSauda Newsletter

Open an account