Indian Pharma Sector’s Growth Visibility Remains Strong: ICICI Securities
Finished tablets cascade down the channels of a packaging machine. (Photographer: Andrey Rudakov/Bloomberg)

Indian Pharma Sector’s Growth Visibility Remains Strong: ICICI Securities

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

ICICI Securities Report

We remain positive on pharmaceutical sector considering high possibility of growth revival in India formulations on low base of FY21, stable pricing in U.S. generics and sustenance of cost control initiatives seen during FY21 due to pandemic, albeit partially over long term.

Hence, FY22E Ebitda margin would likely be lower than FY21 with resumption of some selling, general and administrative expenses (travelling, marketing etc.) but would still be higher than FY20 levels.

We believe the underperformance of the sector in the last few months has factored in this concern.

We prefer companies with a strong India business, complex generics pipeline for the U.S. and improving return ratios.

Click on the attachment to read the full report:

ICICI Securities Pharma Sector Update.pdf


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