Torrent Pharma among 3 pharma stocks to buy as analysts sees strong gain in 2023

Research analysts at brokerage firm Prabhudas Lilladher said in a research note that “We expect pharmaceutical companies under our coverage to post moderate EBIDTA growth of 6.5% yoy (like quarter), mainly helped by strong domestic growth. steady growth, gRevlimid sales and a strong flu season. In us. The benefits of the depreciation of the INR against the USD (+10% yoy and 3% qoq) will also contribute to performance. On the other hand, the cost is likely to remain high and volatile. Price erosion of the US base business is likely to continue. Our top picks continue to be SUNP, CIPLA, JBCP and TRP."

Furthermore, they have stated that “the BSE healthcare index outperformed Sensex by 7.3% in the October-December 2020 quarter, given weak second-quarter earnings. While the sector may continue to underperform marginally in the near term, our sector outlook remains positive, driven by tailwinds in US generics, the healthy domestic formulations segment, and normalization in the cost of the inputs. Going forward, we expect profitability to improve with stable domestic business, improved niche launches in the US market, and continued cost optimization. We prefer companies with stable national franchises and strong visibility in the US. Our top picks continue to be SUNP, CIPLA, JBCP and TRP."

Regarding the shares of Sun Pharmaceutical Industries, analysts have said that “in recent years, SUNP's reliance on US generics has been reduced and the company's growth is more functional in the domestic, specialty and pharmaceutical business. US National Pharmaceuticals, which continues to show strong growth visibility. Maintain 'BUY' rating on stock at TP $1175".

For Cipla stock, analysts recommended that “with continued growth in the domestic market and visibility in further revenue traction from the continued increase in niche launches in the US, we remain positive on the Cipla stock. the actions. Maintain 'BUY' rating on TP of $1300".

For JB Chemicals & Pharma shares, research analysts at brokerage firm Prabhudas Lilladher said in a note that "the company's strong positioning in domestic markets and focus on scaling emerging opportunities in the export segment, puts it in an advantageous position to take advantage of long-term growth prospects. Maintain 'BUY' rating on TP of Rs. 2350".

For Torrent Pharmaceuticals shares, research analysts said: “The strong presence in highly profitable branded businesses in the domestic market, as well as in Brazil and the rest of the world, and the recent completion of the Curatio acquisition gives peace of mind with actions. Recommend 'BUY' rating on TP $1850".

Taking the hospital sector into account, the brokerage said that "in the third quarter, hospital companies under our coverage are expected to post flat yoy growth (down 4% qoq) in post-IND AS EBITDA (6% (YoY EBITDA growth excluding the Rs 1.750 crore loss at Apollo 24x7).With Q3 being a seasonally weak quarter, we expect occupancy across our coverage universe to remain weak in the prior quarter.We anticipate ARPOB will continue to remain healthy, helped by improving case and payer mix Overall, we see EBITDA declines of 14%, 5% and 3% YoY for APHS, ASTERDM and FORH, while NARH, HCG, KIMS and MAX may experience year-over-year growth of 26%, 26%, 14% and 8%, respectively.We remain structurally positive in the hospital space and expect momentum to or continue in FY24 with 1) improvement in occupancy, 2) better case mix, and 3) sustainability of the current ARPOB."

The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of the Mint. We advise investors to consult with certified experts before making any investment decision.