Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>In Q3FY24, <a href="https://www.smartkarma.com/entities/cipla-ltd" target="_blank" data-smartkarma-citation="entities:3918:1" rel="noopener">Cipla Ltd (CIPLA IN)</a> recorded revenue of INR66B, up 14% YoY, and EBITDA margin of 24.2%, driven by double-digit growth across India, North America, and South Africa.</li>
<li>North America business reported highest ever revenue of $230M. India revenue is up 12% YoY, supported by growth across branded prescription, trade generics, and consumer health.</li>
<li>EBITDA margin for the full year is trending at a higher end of earlier guidance range of 23–24%. Peptide product launches in the U.S. should strengthen near-term growth prospect.</li>
</ul>


In Q3FY24, Cipla Ltd (CIPLA IN) recorded revenue of INR66B, up 14% YoY, and EBITDA margin of 24.2%, driven by double-digit growth across India, North America, and South Africa.
North America business reported highest ever revenue of $230M. India revenue is up 12% YoY, supported by growth across branded prescription, trade generics, and consumer health.
EBITDA margin for the full year is trending at a higher end of earlier guidance range of 23–24%. Peptide product launches in the U.S. should strengthen near-term growth prospect.


Cipla (CIPLA IN): Q3FY24 Result- Continued Growth Trajectory Across Key Markets; Positive Outlook

External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

External broker reports(aggregated public sources)

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Sun Pharmaceutical Industries / Equity Bottom-Up

<ul><li>Sun Pharma (SUNP) owns ~78.5% of Taro Pharma (represented 10% of SUNP’s revenues/3% of EBITDA in FY23)</li><li>Taro posted strong sales growth of 13% YoY to USD 157 mn (+6% QoQ), led by new launches with a sharp improvement in adjusted EBITDA to USD 24 mn (up 180% YoY) and margin of 15.4% (vs 6.2% YoY), led by sales growth, improved gross margin (+482 bps YoY) and decreased operating costs</li><li>The consistent improvement in Taro’s performance in the last two quarters is positive, given Taro was facing growth and operational challenges due to increased competition (leading to price erosion) in its key products in the last 7-8 quarters</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sun Pharma (SUNP) owns ~78.5% of Taro Pharma (represented 10% of SUNP’s revenues/3% of EBITDA in FY23)Taro posted strong sales growth of 13% YoY to USD 157 mn (+6% QoQ), led by new launches with a sharp improvement in adjusted EBITDA to USD 24 mn (up 180% YoY) and margin of 15.4% (vs 6.2% YoY), led by sales growth, improved gross margin (+482 bps YoY) and decreased operating costsThe consistent improvement in Taro’s performance in the last two quarters is positive, given Taro was facing growth and operational challenges due to increased competition (leading to price erosion) in its key products in the last 7-8 quartersContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sun Pharmaceutical Industries: SUNP’s Subsidiary Taro Posts Strong Performance.

Thematic (Sector/Industry)

<ul><li>The pharmaceutical sector, emerging from the volatility of the past two post-pandemic and geopolitically tumultuous years, is now on a recovery path in CY23</li><li>Overall costs are stabilizing and there are green shoots in the US business</li><li>This positive momentum has led to the BSE Healthcare index outperforming the Sensex by ~15/25% in the past 6/12 months</li><li>We remain constructive on US generics, led by factors such as moderating price erosion and regulatory issues (USFDA) in the US, successful approval and launches of complex products, opportunities arising from the loss of exclusivity, softening input costs, volume growth due to drug shortages, and steady growth in India.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The pharmaceutical sector, emerging from the volatility of the past two post-pandemic and geopolitically tumultuous years, is now on a recovery path in CY23Overall costs are stabilizing and there are green shoots in the US businessThis positive momentum has led to the BSE Healthcare index outperforming the Sensex by ~15/25% in the past 6/12 monthsWe remain constructive on US generics, led by factors such as moderating price erosion and regulatory issues (USFDA) in the US, successful approval and launches of complex products, opportunities arising from the loss of exclusivity, softening input costs, volume growth due to drug shortages, and steady growth in India.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pharmaceuticals: US Generic Growth to Stay, Selective on Structural Play

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Petroleo Brasileiro  / Technical Analysis

<ul>
<li>Global growth stocks that have significantly outperformed since the October 2023 lows are starting to pull back, and we believe a continued pause/pullback is likely in these growth areas.</li>
<li>Meanwhile, we are seeing a clear shift into value and defensives, and we recommend adding exposure to these areas. This type of Sector rotation is common during bull markets.</li>
<li>Major supports continue to hold, including $98-99 on MSCI ACWI (ACWI-US), 4600 on the S&amp;P 500, 4400 on the EURO STOXX 50, and 2300 on the TOPIX</li>
</ul>


Global growth stocks that have significantly outperformed since the October 2023 lows are starting to pull back, and we believe a continued pause/pullback is likely in these growth areas.
Meanwhile, we are seeing a clear shift into value and defensives, and we recommend adding exposure to these areas. This type of Sector rotation is common during bull markets.
Major supports continue to hold, including $98-99 on MSCI ACWI (ACWI-US), 4600 on the S&amp;P 500, 4400 on the EURO STOXX 50, and 2300 on the TOPIX


Buys Within Global Energy, Health Care, and Utilities; Bullish Outlook Intact on Global Equities

<ul>
<li>Indian pharmaceutical companies started FY24 on a strong note. Due to better pricing environment, drug shortages, and new launches, sector heavyweights reported double-digit revenue growth from U.S. business.</li>
<li>Price erosion has come down to high single-digit from their peak of mid-teens. Despite the rise in number of ANDA approvals from the US FDA, Indian companies continued their dominance.</li>
<li>Indian pharmaceutical companies have accelerated the filing pace. With shorter timeline of approval, the companies are witnessing a spike in number of approvals. Regulatory risk remains the main downside risk.</li>
</ul>


Indian pharmaceutical companies started FY24 on a strong note. Due to better pricing environment, drug shortages, and new launches, sector heavyweights reported double-digit revenue growth from U.S. business.
Price erosion has come down to high single-digit from their peak of mid-teens. Despite the rise in number of ANDA approvals from the US FDA, Indian companies continued their dominance.
Indian pharmaceutical companies have accelerated the filing pace. With shorter timeline of approval, the companies are witnessing a spike in number of approvals. Regulatory risk remains the main downside risk.


Indian Generic Pharmaceutical Companies: US Momentum to Continue Amid Favorable Sector Tailwinds

India

Sun Pharmaceutical Industries Limited manufactures and markets pharmaceuticals for domestic and international distribution. The Company's pharmaceutical portfolio includes drugs in the areas of diabetes, cardiology, neurology, psychiatry and  gastroenterology.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Sun Pharmaceutical Industries (SUNP IN)

Cipla (CIPLA IN): Q3FY24 Result- Continued Growth Trajectory Across Key Markets; Positive Outlook

Cipla reports strong Q3FY24 result with 14% YoY sales growth and 24.2% EBITDA margin. US business achieves record high sales. Full-year EBITDA...

Tina Banerjee

Sun Pharmaceutical Industries: SUNP’s Subsidiary Taro Posts Strong Performance.

Taro posted strong sales growth of 13% YoY to USD 157 mn (+6% QoQ), led by new launches with a sharp improvement in adjusted EBITDA to USD 24 mn

HDFC Securities

Pharmaceuticals: US Generic Growth to Stay, Selective on Structural Play

The pharmaceutical sector, emerging from the volatility of the past two post-pandemic and geopolitically tumultuous years, is now on a recovery...

HDFC Securities

Buys Within Global Energy, Health Care, and Utilities; Bullish Outlook Intact on Global Equities

Seeing a clear shift into value and defensives, and we recommend adding exposure to these areas globally. Constructive if supports hold: $98-99 on...

Vermilion Research

Indian Generic Pharmaceutical Companies: US Momentum to Continue Amid Favorable Sector Tailwinds

Indian pharma companies saw strong U.S. revenue growth in H1FY24 due to better pricing, drug shortages, and new launches. With robust pipeline and...

Tina Banerjee

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Cipla (CIPLA IN): Q3FY24 Result- Continued Growth Trajectory Across Key Markets; Positive Outlook

​Cipla reports strong Q3FY24 result with 14% YoY sales growth and 24.2% EBITDA margin. US business achieves record high sales. Full-year EBITDA...

Tina Banerjee

Sun Pharmaceutical Industries: SUNP’s Subsidiary Taro Posts Strong Performance.

Taro posted strong sales growth of 13% YoY to USD 157 mn (+6% QoQ), led by new launches with a sharp improvement in adjusted EBITDA to USD 24 mn

HDFC Securities

Pharmaceuticals: US Generic Growth to Stay, Selective on Structural Play

The pharmaceutical sector, emerging from the volatility of the past two post-pandemic and geopolitically tumultuous years, is now on a recovery...

HDFC Securities

Buys Within Global Energy, Health Care, and Utilities; Bullish Outlook Intact on Global Equities

Seeing a clear shift into value and defensives, and we recommend adding exposure to these areas globally. Constructive if supports hold: $98-99 on...

Vermilion Research

Indian Generic Pharmaceutical Companies: US Momentum to Continue Amid Favorable Sector Tailwinds

​Indian pharma companies saw strong U.S. revenue growth in H1FY24 due to better pricing, drug shortages, and new launches. With robust pipeline and...

Tina Banerjee

Cipla reports strong Q3FY24 result with 14% YoY sales growth and 24.2% EBITDA margin. US business achieves record high sales. Full-year EBITDA...

Indian pharma companies saw strong U.S. revenue growth in H1FY24 due to better pricing, drug shortages, and new launches. With robust pipeline and...