Shares of pharmaceutical companies are on a roll on the bourses with most of them trading higher by 1-4% in otherwise subdued market.
The BSE healthcare index, the largest gainer among the sectoral indices, is trading higher by 1% or 93 points at 7,024 touched an all-time high today. The index has outperformed the market by gaining almost 20% compared to 12% rise in benchmark Sensex so far in 2012.
According to Barclays Research, the Indian Pharma sector, will post a 28% top-line and 44% EBIT (earnings before interest and depreciation) growth in the first quarter of fiscal 2013, on the back of continued revenue momentum in the US, new product launches and a resurgent domestic Indian market.
The fundamentals for the sector remain intact owing to mid-teens growth from the US market, which is better than market expectations; stronger revenue growth in the Indian market; and improving cash generation from the business, the research firm said in its report.
Nirmal Bang institutional equities said,” Most companies are likely to report strong US growth led by a 9% sequential fall in the rupee against the dollar during the quarter and the launch of exclusive products.”
Among individual stocks,Lupin has rallied 4% to Rs 574, also its lifetime high on the BSE. Cipla, Dr. Reddy’s Laboratories, Ranbaxy Laboratories, Sun Pharmaceutical Industries and Cadila Healthcare are trading higher by 1-3% each.