Healthcare share price target

Once the favourite of investors, due to asset-light structure, high cashflow generating capability, healthy return ratios and visibility of sustainable growth over medium to long term, diagnostic companies are now losing their charm with a sharp jump in competitive intensity led by new entrants backed by large conglomerates.
conglomerates.

US sales Flat QoQ: We expect US sales to remain steady QoQ with continued challenging environment and lack of meaningful approvals. Sun Pharma's specialty sales are likely to increase in Q4FY22 as traction in WINLEVI product continues. Given lack of meaningful approvals and continued...

Post the onset of Covid, hospitals rather than keeping doctors on fixed payroll, have increasingly adopted margin accretive model wherein doctors share a percentage of consulting fee and IPD income, for surgeries done in the hospital premises. In addition, maturing profile of hospitals, reduction in ALOS along with ramp up in occupancy and ARPOB levels have moved the hospitals to a better margin profile. During Q4, hospitals were well equipped...

Continuity of domestic formulations growth with increasing share of nonCovid portfolio is likely to drive Q2FY22 sales even as expected weakness in the US generics space could act as a spoiler for overall momentum. The Idirect healthcare universe (12 coverage companies) is expected to post YoY growth of ~5.5% to ~| 46123 crore. Domestic formulations (select pack) are expected to grow ~14% to | 11219 crore due to continuous traction from acute segment (momentum began from Q1) besides normalised trend in the chronic segment. We expect a significant shift in growth momentum from Covid to non-Covid portfolio on the back of receding active cases and growing vaccination drive across the country....

The fast spread of novel coronavirus, or COVID-19, globally is raising concerns in India.

Led by better-than-expected growth across export geographies and efficient cost control measures, most of the I-Direct coverage companies have reported beat on all fronts. Revenues of I-Direct pharma universe grew 14.3% YoY to | 45470 crore. Overall US pie reported one of the best results in the recent past due to 1) volume gains 2) mitigating base business price erosion 3) new launches and 4) currency tailwinds. Indian formulations growth was impacted mainly due slow growth in acute segment and high base of restocking of inventories. Margins performance was better-than...

The I-direct healthcare universe is expected to register 10.8% YoY revenue growth to | 44082 crore on the back of acquisitions and a recovery of the US base business besides currency tailwinds. However, on a case by case basis, growth numbers may be varied as the quarter is likely to see a positive rub-off for some players and at the same time structural limiting factors for others. Domestic growth can be muted for some companies on the back of a weaker acute season impact. This is also likely to impact their EBITDA margins. US revenues (select pack) are expected to grow 12.5%...

The pharma results (excluding Sun Pharma) were better-than-expected on all fronts. The US base business seems to have stabilised as the price erosion is largely restricted by volume gains. The growth in the US was on the back of new launches and currency tailwinds. As expected, Indian formulations growth was impacted during the quarter mainly due to high base of restocking post GST implementation. The margin performance was better-than expected mainly due to the lower impact of Chinese sourcing pressure and APIs that are pegged with crude prices. On the geographical...

After a strong showing in Q1FY19 due to the base effect and currency tailwinds, we expect some consolidation in Q2 financials due to 1) higher base and 2) cost pressure that can be attributed to supply constraints from China and higher crude prices. These two factors are likely to dilute strong currency tailwinds. The I-direct healthcare universe is expected to register 10% YoY growth. Domestic formulations are likely to grow 5.6% YoY (select pack) due to high base owing to channel restoration in Q2FY18 post GST implementation. US revenues (select pack) are expected to grow 8%...

ICICI Securities Ltd. | Retail Equity Research Course correction drive after turbulent FY16... FY16 turned out to be a demanding fiscal for pharma players after a near...