Sumary of Sharekhan maintains #39;buy#39; on these 15 pharma names post Q2 earnings. Take a look:
- Cadila Healthcare, Dr Reddy’s and Sun Pharma among the preferred largecap picks of Sharekhan.
- Revenues, earnings growth moderated on a Y-o-Y basis versus Q1FY22. Growth during the quarter was driven by India business while US growth was muted.
- Higher raw material prices and freight charges led to costs pressures leading to margin contraction.
- Consequently, PAT growth moderated to 9% versus double digit growth in Q1FY22. Aurobindo Pharma | Rating: Buy | LTP: Rs 658 | Target: Rs 875 | Upside: 33 percent | For Aurobindo Q2FY22 was a weak quarter and the results missed estimates.
- Further, basis the uncertainties persisting for its US business as well as weak performance of ARV segment, broking house revised earnings estimates downwards by around 5% each for FY22E and FY23E.
- Cadila Healthcare | Rating: Buy | LTP: Rs 459 | Target: Rs 720 | Upside: 57 percent | Cadila reported steady performance in Q2FY22. Sharekhan retained its estimates for FY22E and FY23E.
- Cipla | Rating: Buy | LTP: Rs 893 | Target: Rs 1,150 | Upside: 28 percent | Cipla’s Q2FY2022 was a healthy quarter and based on management commentary, broking firm fine-tuned FY2022E and FY2023E estimates.
- Given the de- stocking in the generic API segment and possible cost pressures Sharekhan revised broadly maintained its estimates by 1% / 2% for FY22E and FY23E.