6 Largecap Pharma Stocks To Buy And Add To Your Portfolio

Sharekhan has a buy call on some of the largecap pharma companies as per its latest quarterly preview ahead of numbers for the period ending March 31, 2022. Performance of the Pharmaceutical companies in the Sharekhans universe is likely to be stressed in Q4Fy22 marred by likely cost pressures.

Here are 6 largecap stocks where the company has a buy call.

Stock	Recommendation	Target price
Aurobindo	Buy	875
Lupin	Buy	1012
Torrent Pharma	Buy	3540
Sun Pharma	Buy	1000
Dr Reddy's	Buy	5900
IPCA	Buy	1160

Here are the quarterly preview for these pharma companies as per Sharekhan

Aurobindo Pharma

Revenues to be almost flattish on a y-o-y basis, due to a weak performance across geographies and disposal of Natrol business.

OPM to be declining on y-o-y basis due to presence of the high margins natrol sales in corresponding quarter previous year as well as pricing pressures in the US, which is almost half of the overall sales. PAT to be down reflecting the topline and operating performance.

Lupin

Domestic revenues to grow in strong double digits, while US sales to grow in low single digits due to price erosion. Margins to contract due to cost pressures and Earnings to decline reflecting the operating performance.

Sun Pharma

Pick up in the specialty business. Improvement n the domestic sales along with traction in other geographies would be the key growth drivers. Better traction in the specialty segment and improvement in domestic business to drive the margin expansion. Tracking the operating performance the earnings are expected to stage a strong growth.

Dr Reddy's

Topline growth to be driven by a double digit growth in the domestic sales followed by a high single digit growth in the US sales despite pricing pressures. Net profits to grow in mid-single digits.

Torrent Pharma

Topline growth to be supported by a strong double digit growth of the domestic business; While US business to improve sequentially. Tracking the operating performance the PAT expected to decline.

IPCA

The Domestic revenues of the company are expected to be strong reflecting the growth in the IPM, while the exports growth is likely to be under pressure due to high base. Margins to decline due to cost pressures and expected slow growth in the exports leading to unfavorable mix. Earnings to grow in double digit largely due to low base.