In it's recent research report Pinc recommends Pharmaceutical stocks like Glenmark, Piramal Healthcare, Ranbaxy since,
The increasing earnings visibility driven by mid teens growth in the core business and better visibility of cash flows from Para IV pipelines remain under appreciated by the street. Unlike their global counter parts, Indian players are more geographically diversified making them relatively less vulnerable to changes in the industry dynamics in any particular market. With most Indian companies at the end of the capex cycle, return on capital is also set to improve.
Indian pharma companies are at a strategic advantage to their global peers in tapping the 'branded' generic markets in the emerging world due to the cost advantage and the experience of selling cheap branded generics in India. Glenmark's foray in Brazil, Dr Reddy's success in CIS and Ranbaxy's success in South Africa are cases in point.
With this, Pinc also initiate coverage on Sun Pharma, Cipla and GSK India with a SELL rating; and Dr Reddy’s with a HOLD rating.
The increasing earnings visibility driven by mid teens growth in the core business and better visibility of cash flows from Para IV pipelines remain under appreciated by the street. Unlike their global counter parts, Indian players are more geographically diversified making them relatively less vulnerable to changes in the industry dynamics in any particular market. With most Indian companies at the end of the capex cycle, return on capital is also set to improve.
Indian pharma companies are at a strategic advantage to their global peers in tapping the 'branded' generic markets in the emerging world due to the cost advantage and the experience of selling cheap branded generics in India. Glenmark's foray in Brazil, Dr Reddy's success in CIS and Ranbaxy's success in South Africa are cases in point.
With this, Pinc also initiate coverage on Sun Pharma, Cipla and GSK India with a SELL rating; and Dr Reddy’s with a HOLD rating.
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