ICICI Securities: India Pharma Market Resilient And Growth Pick-Up To Sustain Premium Valuations
Bottles of Duloxetine delayed-release capsules await labeling on the production line inside the packaging unit at the Lupin Ltd. pharmaceutical plant in Goa, India (Photographer Dhiraj Singh/Bloomberg)

ICICI Securities: India Pharma Market Resilient And Growth Pick-Up To Sustain Premium Valuations

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy

ICICI Securities Report

As per All India Organisation of Chemist and Druggist, the Indian pharmaceutical market reported decent recovery in June with 2.4% growth after reporting decline of 11.2% in April and 8.9% in May. We believe Indian pharma industry is quite resilient in the current pandemic and we don’t expect any material structural impact on pharma sector. We expect improvement in growth rate to continue in the ensuing months as restrictions in lockdown ease further.

U.S. generics business has stabilised after few years of consistent decline with stable pricing and faster approvals. Pharma sector is relatively defensive as it offers long-term growth sustainability with minimal demand impact. Hence, we remain positive on the sector and expect recent re-rating of the valuations to sustain.

Click on the attachment to read the full report:

ICICI Securities Pharma_sector_Jul20.pdf

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