Celebrities support Anu Ranjan’s #BeWithBETI campaign - Maharashtra’s first greenfield Smart Industrial City – AURIC attracts a record Rs. 3,600 cr investment from global investors, future-ready AURIC to create over 3 lakh jobs, host 3 lakh residents - Final Match report of 2019 CCI International JSW Indian Squash Circuit - Munich Airport maintains dynamic traffic growth in 2018, Passenger traffic up by 1.7 million to a new record of over 46 million - - TONIQ CELEBRATES THIS VALENTINE’S DAY WITH ITS NEWEST COLLECTION – QUIRKY LOVE **AN AFFAIR WITH YOURSELF ** - Malaysia’s Penang Convention & Exhibition Bureau Leads Delegation of 13 to India, Launching New Incentives and Support for the India Market - Another quarter of muted EBITDA Steady domestic business; currency tailwinds to bolster exports - CHOOSE TO START THE YEAR RIGHT WITH ETIHAD’S GLOBAL SALE - Lakmé Fashion Week and Diamond Producers Association join hands to identify, mentor Indian Diamond jewellery design talent - ASSOCHAM Reaction: Exemption limit for GST hiked to Rs 40 lakh from Rs 20 lakh - Quarter Final 2019 CCI International JSW Indian Squash Circuit - Over 46,000 runners gear-up to run the 16th edition of Tata Mumbai Marathon - Vikram Mastal debut movie Suspense first song Chadh Gayi released - 26th IMC Ladies’ Wing Jankidevi Bajaj Puraskar 2018 honours Smt. Pavithra Y Sundareshan, Founder & Managing Director, Vindhya e-Infomedia Pvt.Ltd Bengaluru - XOLO unveils Era 4X smartphones with 30 days Money Back Offer Exclusively on Amazon.in - PNB METLIFE AND ESAF SMALL FINANCE BANK ENTER INTO A STRATEGIC PARTNERSHIP FOR LIFE INSURANCE DISTRIBUTION - 2ND GLOBAL TEXTILE TECHNOLOGY & ENGINEERING SHOW 2019 (GTTES’19) to be held in Mumbai on 18th to 20th January 2019 - KPI Global Infrastructure Limited’s SME IPO to open on January 8, 2019 with an issue price of Rs 80 per equity share of face value Rs. 10 each · Initial Public Offer of upto Rs. 39.93 crore - KAUN BANEGA CROREPATI REGISTRATIONS START WITH A RECORD MILESTONE OF 27.2 LAKH ENTRIES - Kiara Advani Stuns In Papa Don’t Preach by Shubhika at the Bombay Times Fashion Week - JSW Steel (USA) Inc & Office of Governor, Texas USA sign Memorandum of Cooperation to develop the local steel industry - International Customs Day Maharashtra Governor hails multifaceted contributions of Customs in nation-building - Israeli PM Visit to India - Journalists honoured with Mantralaya Vidhi Mandal Vartahar Sangh awards - Kerala shifts into high gear with a brand new tourism policy and an assorted fare of tourism products - Kolhapur can be next IT hub, says Dr. Lalit Kanodia - Intersolar India 2017 opens the doors to 260 exhibitors, 12,000 international visitors and over 500 conference delegates - Juhi Chawla sets pulses racing, reading from Jyotin Goel’sgripping new book, ‘Bheem - Destiny’s Warrior’ - KIFS Trade Capital gets the ‘Innovative launch campaign of the year Award’ *KIFS TradeOn+ app receives the award at Global Marketing Excellence Awards - Kashish’ Organizes Musical Programme for B.S.F. Jawans in November End - Intersolar India, the Three Day Flagship Solar Industry Conference and Exhibition Opens on December 5 in Mumbai - Kids were empowered to fight abusers ahead of Children’s day - JET AIRWAYS’ FLIGHT OF FANTASY CELEBRATES 20 GLORIOUS YEARS OF GIVING WINGS TO CHILDRENS DREAMS - KBC Season 9 finale: The perfect way to bid adieu to the unprecedented show - iPHONE X LAUNCH AT iAZURE WITH JACKIE SHROFF, ABHAY CHOPRA, MEGHNA PURI & ANUJA BHOSLE, PART OF PROCEEDS TO AID THE GIRL CHILD CAUSE - Khadim India Limited’s IPO opens on Thursday, November 02, 2017 and closes on Monday, November 06, 2017, with Price Band of Rs. 745 to Rs 750 per Equity Share of face value of Rs. 10/- each - KBD juniors - an inter-school Kabaddi championship conducted by Star Sports - Khushru Jijina recognized as ‘AsiaOne Global Indian of the Year 2016-2017’ - Kalyan Jewellers makes a grand opening in Bhopal by the hands of iconic Amitabh Bachchan - IPO of Bharat Road Network Ltd. opens on September 06, 2017 at a Price in Band of Rs. 195 – Rs. 205 per equity share - JSW today announced Results for the first quarter ended 30 June 2017 - INSURANCE CLAIMS OF THE VICTIMS OF RECENT FLOODS IN THE STATES OF ASSAM AND GUJARAT - Internet Applications contributed INR 1.4 lakh crores to India’s GDP in 2015-16; potential to be INR 18 lakh crores by 2020: ICRIER & Broadband India Forum - Karbonn brings India’s first smartphone ‘K9 Kavach 4G’ integrated with BHIM - Jackie Shroff, Amruta Fadnavis celebs grace the felicitation of Ms Tao Porchon as World’s Oldest Ballroom Dancer by World Book of Records organized by Sandip Soparrkar - Jain Irrigation conferred with Golden Trophy award by ‘APEDA’ - JACQUELINE FERNANDEZ LAUNCHES THE BODY SHOP’S BIGGEST CAMPAIGN AGAINST ANIMAL TESTING - IPSTAR selects Hughes JUPITER™ System to extend BSNL broadband services across the country - Khadi by Raymond – India’s First Branded Khadi Label~ Offers an exquisite range of Khadi Fabrics & an array of ready to wear apparel - JSW Steel reports Highest ever Production, Sales, EBITDA and PAT announced its results for the Fourth Quarter and the Financial Year ended 31st Mar, 2017 - Kokuyo Camlin begins operations from Patalganga Plant - INTRODUCING ZOOTY - THE BEAUTY APP FOR A MORE BEAUTIFUL YOU - ItzCash associates with Kings XI Punjab as its Official Principal Sponsor and Payments Partner - INTERNATIONAL GLORY FOR INIFD BANDRA MUMBAI, Vivek Dhawan and Disha dhawan father daughter duo proud to have their students showcase in London fashion week - Kotak Mahindra Bank Unveils Bold Organic Growth Charter with 811 - Knight Frank awarded “Property Consultant of the Year” at the 11th CNBC AWAAZ Real Estate Awards 2016-17

Another quarter of muted EBITDA Steady domestic business; currency tailwinds to bolster exports

 

MUMBAI, (GNI): We expect EBITDA growth of 7% YoY and 9% QoQ for our pharma universe in Q3FY19E, aided by steady domestic business. Further, currency tailwinds (barring the real & the rouble) would continue to bolster exports. In USD terms, US business is likely to see revenue growth, up 7.8% QoQ, aided by new launches and Q3 seasonally being a strong quarter in terms of antibiotics (Cephs) and flu-related sales.  Among our coverage universe, we expect EBITDA growth of 41.7% YoY for Glenmark (low base & Q3FY18 had forex loss), Torrent Pharma at 50.6% YoY (Unichem consolidation) and Sun Pharma at 16.2% YoY (low base & Halol resolution). Cadila profitability may dip by 7.7% YoY as Q3FY18 had limited competition products in the US while Cipla EBITDA dip by 4.8% on supply issues & lower tender offtake.

Likely sequential improvement in US sales: We expect a 6-18% YoY decline in US sales for Dr Reddy’s, Lupin and Cadila, given increased competition in some high value products. However, Aurobindo and Cipla should see 10-19% YoY growth on new launches and order wins while Torrent Pharma at 38% YoY growth may be led by Bio-Pharma consolidation. Sun Pharma would continue to see 7.5% improvement YoY in non-Taro US sales, led by ramp-up in specialty sales & supplies after Halol resolution. We see 23% QoQ growth for Cadila and 12% QoQ for Cipla, aided by new launches, while Lupin’s QoQ growth of 11% would be led by antibiotics and Tamiflu sales, given Q3 is seasonally strong. Further, benefits of Valsartan shortage would continue to bolster sales for Aurobindo QoQ.

Pharma sees limited scope of multiple re-rating: The BSE Healthcare Index has underperformed the Sensex by 7% on weak Q2 numbers and negative news in case of Sun Pharma-related to corporate governance and whistleblower issues. Despite the fall, the stocks are still trading rich at valuations of 15-26x FY20E earnings, and we see limited scope of multiple re-rating; we believe stock price performance will be a function of earnings upgrade. We prefer firms with strong domestic franchises and better visibility in the US. Our top picks remain Aurobindo, Torrent Pharma, Ipca Labs & Strides Pharma.

Apollo Hospitals drives hospitals space growth: We see EBITDA growth of 15.5% YoY for our hospitals universe, led by growth in Apollo Hospitals (14% YoY), given broad-based growth. Narayana Hrudayalaya and Healthcare Global Enterprises also would see EBITDA growth of 12-21% YoY, aided by low base and ramp-up in newer hospitals, but it will continue to drag PAT, given higher depreciation and interest cost. Listed hospital firms had undergone an aggressive investment phase, which is nearing the end. Most firms are consolidating existing operations before adding new ones. The platform is set for future growth and accelerated profitability over the medium term. Mature hospitals still contribute 70-90% of overall EBITDA, underscoring this big shift in operating dynamics. We retain our positive stance on hospitals.ends

Be the first to comment on "Another quarter of muted EBITDA Steady domestic business; currency tailwinds to bolster exports"

Leave a comment

Your email address will not be published.


*