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Q2FY25 Pharma earnings trend- Decent set of numbers driven by US and India
The trend emerging from Pharma Q2FY25 numbers indicates decent performance by US and India.
Sales of the sample group (Sun, DRL, Cipla, Torrent and Zydus) have increased 12% YoY to ₹ 36334 crore, driven by India branded business growth and the US.
US portfolio witnessed Steller growth of ~19% YoY to ₹ 12729 crore and was driven by continued momentum of niche launches in the US such as anti-cancer / hormonal injections, respiratory and Specialty products
India branded formulations grew 10% YoY to ₹ 11699 crore, driven by volume growth and price hikes.
EBITDA of the sample grew 16% YoY to ₹ 10256 crore and the margins stood at 28.2%. The margins held firm YoY despite higher R&D and SG&A expenses and the firmness was driven by outstanding US growth driven by niche launches which faced lower competition and continuous momentum from India which is a high margin business.
We have a BUY rating on Sun Pharma (Target ₹2185), DRL (Target ₹1570), Cipla (Target ₹1685).
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
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