Earnings season held up well; positive on Cipla and Sun Pharma: Mayuresh Joshi

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Key Points

Cipla, again, revising their margin guidance from 23% to 24% odd, higher end of the range is a possibility for the better part of this financial year."..

Since you were talking about the earning season, one cannot ignore the kind of outperformance that we have seen from the pharma sector whether it is the upgrade coming in from Cipla or the fact that Sun Pharma is holding up with a gain of around 2.5% and then Piramal Pharma that was quite a bit of turnaround story as well..

The kind of pipeline that they have got, specifically in its respiratory portfolio, can do wonders in the next financial year as well as approvals start coming through and that is probably something which is creating a huge impact as far as US formulation numbers are concerned...

Similarly, for Sun, the kind of pipeline that they have probably got, specialty sales is now 16.5% of the total top line, R&D expenditure at 6.5% but that is expected to inch even higher, maybe 7-7.5% for the better part of this year..

As this builds up over the next few quarters and as the pipeline starts getting monetised, the kind of numbers that you are expecting, both in terms of US domestic formulation sales as well as the India number, where they are holding on to the numero uno position can very well continue. Obviously, the stocks have moved higher, the stocks have shown good, strong price action over the last few months but we continue to remain optimistic on that..

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