Over the last four trading sessions, the Nifty Pharma index has been on a winning streak, setting new record highs with each passing day. In today's trading session, the index surged 1% to establish a new all-time high of 15,640, surpassing its previous peak of 15,498.
This surge in pharma stocks is attributed to their robust performance in the June quarter, led by value-added new launches, market share expansion, strong momentum in the Indian and high double-digit growth in the US markets.
One of the index heavyweights, Cipla, zoomed nearly 20% in just nine trading sessions after the company on July 26 posted stellar performance for Q1FY24. The company reported a 17.7% YoY increase in consolidated revenue, reaching ₹6,329 crore.
Its Indian business saw an 11.6% rise to ₹2,772 crore in Q1, while its US business achieved its highest-ever quarterly revenue of US$222 million, displaying a 43% YoY growth due to strong momentum in its distinctive portfolio.
Cipla posted a profit after tax of ₹996 crore, which is a 45.1% improvement compared to a net profit of ₹706 crore recorded in the same period of last year. Seen sequentially, the net profit improved by 90.80%.
In today's trading session, Gland Pharma shares were locked in a 20% upper circuit limit at ₹1,611 apiece after the company's Q1FY24 earnings beat the Street estimates. The company has exhibited an improvement in business from core markets as well as stability in India and ROW businesses.
It reported a 41% QoQ rise in its consolidated net profit to ₹194 crore, whereas its revenue from operations zoomed 54% QoQ to ₹1,209 crore.
Following the company's stellar performance, domestic brokerage firm Motilal has raised its earnings estimates by 8.5% and 5.0% for FY24–FY25, factoring in a faster revival of the lost business by adding new customers, price stability in the base portfolio, and an increase in milestone income.
The company remains on track to not only revive the base business but also to increase its offerings in newer markets like China, build a niche pipeline for regulated markets, and enhance scope of synergy from the Cenexi acquisition, the brokerage added.
Gland Pharma's stock experienced significant selling pressure between August 2021 and May 2023, with a decline of 76.5%. However, the stock exhibited a strong recovery.
In the current month, the stock has continued its upward trajectory, recording an impressive 23.2% increase in value so far.
Similarly, Dr Reddy's Laboratories shares reached a historic peak of ₹5,739 apiece during today's session. Since the company's announcement of its Q1FY24 results on July 26, the stock has seen a gradual increase of nearly 5% to date.
During the April-June quarter of FY24, Lupin achieved a net profit of ₹453.33 crore, surpassing analysts' expectations. This is a notable turnaround from the consolidated net loss of ₹86.8 crore reported during the corresponding quarter of last year.
It reported a 28.6% increase in revenue to ₹4,814.06 crore, compared to ₹3,743.8 crore in the corresponding period of the previous year.
Notably, North America sales during the quarter reached ₹1,590.5 crore, reflecting 57.4% growth compared to ₹1,010.4 crore in the previous year's corresponding quarter.
Following its strong Q1FY24 performance, Lupin's shares reached a fresh 52-week high of ₹1,094 in the previous trading session.
Similarly, Sun Pharma achieved a new one-year high on August 3 after reporting better-than-expected Q1FY24 figures. The pharmaceutical major reported an 11% YoY increase in revenues, reaching ₹11,941 crore. This growth was largely driven by higher US generic sales, particularly those led by gRevlimid.
Formulation sales in the US amounted to US$471 million, marking a 12% increase over the previous year's Q1 and accounting for over 33% of total consolidated sales in Q1FY24.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
