Stocks To Buy: 7 Pharma Company Stocks Worth Buying Post Quarterly Results

With the results season being out, Sharekhan has come-up with its report on the pharma sector post quarterly results. Here are 7 pharma stocks that the firm has a buy call on, with higher price targets post the quarterly numbers.

Buy the stock of Zydus Lifesciences for a price target of Rs 440 on the stock

With the results season out, Sharekhan is suggesting to buy the stock of Zydus Lifesciences. "Zydus' Q1FY23 margins contracted to reflect elevated cost pressures with the gross margins also declining. The topline staged a steady growth y-o-y pointing at an improvement. Overall, the results are operationally in line with the estimates while a higher other income resulted in PAT coming ahead of estimates. Basis this, we have fine-tuned our estimates for FY23E and Fy24E," the brokerage has said.

Buy Cipla shares for a price target of Rs 1150.

Another buy call from Sharekhan is the stock of pharma major, Cipla. "The company's Q1FY23 performance was weak on a y-o-y basis given the high base due to Covid-led demand, however sequentially, there has been a marked improvement. The performance in the US markets has been impressive with a y-o-y double-digit growth, while the India business was impacted due to a higher base. Operationally the results are in line with the estimates and basis of this we have retained our FY23/FY24E estimates," the brokerage has said.

Buy Divis stock for a price target of Rs 4450

According to Sharekhan, Divis Q1FY23 results were a mixed bag and reflected the higher operating costs while the lower tax rate resulted in a double-digit PAT growth and the results missed estimates. "The operating margins contracted sharply by 590 bps y-o-y and the management commentary suggests sustained pricing pressures going ahead. Basis this we have revised our FY23E and FY24E estimates down by 11% each," the brokerage has said.

Sun Pharma stocks is a buy with a price target of Rs 1130: Sharekhan

Sun Pharma reported strong growth for Q1FY23 on a sequential basis while on a y-o-y basis, growth moderated due to a high base on account of COVID-19. "Results are ahead of estimates. Given the string 29% y-o-y growth in the specialty sales and an encouraging commentary we have revised upwards our estimates by 4% and 8% for FY23E and FY24E," the brokerage has said.

Torrent Pharma

Torrent reported healthy performance for Q1FY2023 and the results were ahead of estimates. "The performance was backed by double-digit growth in Brazil and the domestic business. This coupled with an encouraging management commentary and an expected healthy margin trajectory, we have revised upwards our estimates by 1% to 4% for FY2023E - FY2024E," the brokerage has said.

Lupin: Buy with a price target of Rs 780

Lupin reported a weak performance for Q1FY2023 with OPM surprising negatively, marred by the confluence of factors such as pricing pressures in the US and remediation costs at its plants. "However, commentary on the outlook for US and India business was very encouraging; and factoring this, we have revised our estimates downwards for FY2023 by 15%, while we have broadly maintained our FY2024E estimates," the brokerage has said.

Biocon: Buy the stock with a price target of Rs 360

Q1FY23 was a weak quarter and results missed estimates. "Though the revenues grew in double digits higher cost pressures dented OPM sharply and hence factoring in this, we have cut out estimates for FY23E/FY24E by 9% and 6% respectively," Sharekhan has said in its report.