Pharmaceuticals & Biotech. share price target

Q1FY26 Earnings Preview - Pharma & Healthcare

As per Pharma rack data, during Apr’25, the Indian pharmaceutical market (IPM) grew by 7.8% YoY, led by improved price realization (+5.1% YoY), modest new launches (+2.3% YoY), and muted volume growth (+0.4% YoY).

Top Conviction Ideas - Lupin Ltd, Aurobindo Pharma Ltd, Max Healthcare Institute Ltd, Fortis Healthcare Ltd.

We recommend BUY on Lupin, Aurobindo, Abbott India, Fortis, and Max Health.

Top Conviction Ideas (Pharma and Hospital) - Max Healthcare; Lupin; Fortis Healthcare.

Q3FY25 Earnings Preview - PHARMA & HEALTHCARE

Top Conviction Ideas - Healthcare Global Enterprises Ltd; Lupin Ltd; Dr. Reddy's Laboratories Ltd.

Top Sector Ideas Pharma - Q4FY24

Top Sector Ideas Pharma - Q2FY24

Pharma - Q2FY24 - Earnings Preview

Windfall from the ongoing drug shortages and traction in gRevlimid sales in the US drove 16% / 45% / 41% YoY increase in revenue / EBITDA / PAT in Q1FY24 for the pharma companies under our coverage. Gross and EBITDA margins rose 300bps / 440bps YoY to 65.3% / 23.8% on an aggregate basis.

Top Sector Ideas - Pharma

Pharma - Q1FY24 - Earnings Preview

Pharma companies under our coverage are likely to report revenue/EBITDA/PAT growth of 15%/33%/28% YoY in Q1FY24E. The growth is likely to be led by new launches, market share expansion in key products and acquisition in US & India.

In Q4FY23, companies under our coverage delivered 14%/26%/16% YoY increase in revenue/EBITDA/PAT, respectively. Growth was led by better traction across India and US which also supported 214bps improvement in gross margin.

IPM grew 6.7% YoY in Feb'23 (MAT) led by gastro, cardiac and pain therapies; anti-infectives, respiratory and VMN sales lagged the market

The pharmaceutical industry is a defensive sector, one that is expected to perform well even during market turmoil. Spending above a certain level remains steady, since a person’s health and medical care remains a priority irrespective of macroeconomic factors. As a result, drug makers have a beta considerably lower than 1 – their stock prices are less volatile than the overall market.

We expect pharma and healthcare companies under our coverage to report modest growth in Q3FY23, supported by healthy domestic performance. Raw material and freight costs are expected to taper down slightly but still remain at elevated levels viz-a-viz pre-covid level.