Torrent Pharma among 3 pharma stocks to buy as analysts see strong gains in 2023

Research analysts at broking firm Prabhudas Lilladher said in a research note that “We expect the pharmaceuticals companies under our coverage to report moderate EBIDTA growth of 6.5% YoY (flat QoQ), mainly driven by steady domestic growth, GRVLimited aided by sales and strong flu season. In the US. The benefits of INR depreciation vs USD (+10% YoY and 3% QoQ) will also aid profitability. On the other hand, costs are likely to remain high and volatile. In the US The erosion in the value of the core business is likely to continue. Our top picks are SUNP, CIPLA, JBCP and TRP.”

He further claims that “BSE Healthcare index underperforms Sensex by 7.3% in Oct-Dec 22 quarter, given weak Q2 earnings. While the region may continue to underperform modestly in the near term, our regional outlook remains positive due to tailwinds in US generics, a healthy domestic formulations segment and normalization in input costs. Thereafter, we expect profitability to improve with stable domestic business, advanced launch in the US market and continued cost optimization. We prefer companies with stable domestic franchises and strong US exposure. Our top picks were SUNP, CIPLA, JBCP and TRP.”

For Sun Pharmaceutical Industries shares, analysts said that “SUNP’s dependence on US generics has reduced over the years and the company’s growth is more functional on US specialty, ROW and domestic pharma business, which continues to show strong growth visibility.” TP maintains ‘Buy’ rating on the stock 1175.”

For Cipla shares, analysts recommend that “With visibility of revenue growth from steady growth in the domestic market and continued ramp-up of niche launches in the US, we remain positive on the stock. Maintain ‘Buy’ rating on K TP 1300.”

For JB Chemicals & Pharma shares, research analysts at broking firm Prabhudas Lilladher said in a note that “the company’s strong position in domestic markets and focus on capitalizing on emerging opportunities in the export segment, position it to ride the near Puts us in an advantageous position. Long term growth prospects. Maintain ‘Buy’ rating at TP of Rs.2350.”

For Torrent Pharmaceuticals shares, research analysts said, “Strong presence in domestic as well as highly profitable branded business in Brazil and ROW market and recent completion of Curatio acquisition make us comfortable on the stock. Put ‘Buy’ on TP ‘ Recommend rating 1850.”

Looking at the hospital sector, the brokerage said that “in Q3, hospital companies under our coverage posted flat YoY growth in IND as EBITDA (6% YoY EBIDTA growth ex Apollo at Rs 1.75 billion loss) (down 4% QoQ). 24×7). As Q3 is a seasonally weak quarter, we expect occupancy across our coverage universe to remain soft QoQ. We expect ARPOB cases and payers Will continue to stay healthy by improving mix. Overall, we see EBITDA declines of 14%, 5% and 3% for APHS, ASTERDM and FORH while NARH, HCG, KIMS and MAX decline by 26%, 26%, respectively. 14% and 8% growth can be seen. We remain structurally positive in the hospitals segment and have momentum in FY24 with 1) improvement in occupancy, 2) better case mix and 3) stability of current ARPOB is expected to continue.

The views and recommendations given above are those of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.