A car battery is installed in a Volkswagen Vento (Source: BloombergQuint)

BQEdge | Why Exide Industries’ Stock May Be Running On Low Charge

BQEdge is specially curated for BQBlue subscribers. Every day this note will offer special equity market and stock-specific insights and flag select emerging trends in the tricky-to-trade derivatives market.

On Today’s Edition:

  • Why Exide Industries’ stock may be running on low charge.
  • Cadila Healthcare is facing a double whammy.

Watch | Exide’s Charts Suggest Spark Missing

Why Cadila Seems To Be Under The Weather

Cadila Healthcare is facing a double whammy.

Sales during the first half of the U.S. flu season, which runs from December to February, have not been very encouraging, according to IMS data, with current prescriptions running below 75 percent compared to last year.

Tamiflu capsules sold just a tad over two lakh capsules compared to around nine lakh same time last year, the pharma market research agency said. This will weigh on Indian drugmakers like Cadila, Lupin and Natco Pharma.

Besides, the stock of Cadila has been under pressure of late as its two key products are now facing incremental competition.

First from Mylan after it launched the generic version of gLialda. Second, the Ahmedabad-based pharma company has also lost around 7 percent market share in Levorphanol, a drug which gets Cadila sales to the tune of $90 million a year.

Credit Suisse Analyst Anubhav Aggarwal says the impact from lower prices will be felt even as Cadila plans to shift to the new strength of the drug.