BackTorrent, Glenmark lead Indian pharma market growth. Sun, Cipla, Lupin are among other notable gainers
Stock market Today: Torrent, Glenmark led Indian pharma market growth with their April sales rising 16.7-17.7% in value terms. Alkem also saw sales grow 14.8% y-o-y while Sun, Cipla, Lupin were the other notable gainers seeing value growth of over 12%.IPM growth stood at 8.9% y-o-y during April
PremiumStock Market Today: Torrent Pharmaceuticals and Glenmark Pharmaceuticals were key leaders amongst listed companies, that saw their domestic sales grow 16.7-17.7% during the month of April' 2024 .
The two were closely followed by Alkem Laboratories whose sales in value terms also grew 14.8% y-o-y. However other prominent manufacturers included Sun Pharmaceutical, Lupin Ltd, Cipla Ltd whose domestic sales grew slightly more than 12% in value terms, suggested data by Pharmatrack, a pharmaceuticals market research company.
Also Read- Metal sector: ICICI Securities upgrades Tata Steel, JSW Steel to ‘Buy’; check top picks in the sector
Indian Pharma market recorded a growth of 8.9% year-on-year in the month of April '2024. While value growth stood at 9.2% year-on-year as per Pharmatrack, the volumes de-grew 0.3% year on year .
A strong domestic market growth is necessary to support and drive earnings of Indian Pharmaceutical majors. While the US sales of most Indian pharma companies have done exceedingly well , helped by large product lunches leading to Nifty Pharma index rising more than 50% in last one year, moving forward domestic sales will play imprtant role in helping support overall earnings growth
Zydus Lifesciences , Mankind, Ipca laboratories and Dr Reddy's Laboratories stood amongst notable companies whose sales exceeded IPM growth during April
Also Read- Multibagger Cochin Shipyard share price gains 9% on a large order win from Europe
Analysts at Elara Securities India Pt Ltd said that “We expect a slight uptick in growth for India’s pharma market (IPM) compared to the levels of Calendar Year 2023, yet it is likely to remain within a constrained range throughout CY24 and FY25". Volume growth might accelerate albeit with moderate price increases, they added
Elara analysts reiterate that anticipated organic growth, estimated at 11-14% for pharma stocks, could fall short of expectations. This presents a potential risk, particularly for companies reliant on the domestic business for their overall profit, as per them.
The acute segment sales remain subdued, that is dampening overall pharma market growth even as Chronic segment of drugs see growth momentum continue.
It was the cardiac segment sales growth at 13.5% YoY, dermatology at 11.3% YoY, and anti-diabetic segments at 10.7% YoY that pulled up performance of Indian Pharma market during April. Additionally, the central nervous system (CNS) also supported well. However, respiratory, vitamins, minerals, & nutrients (VMN), and pain management segments reported subdued growth. It is the pick up of growth in these segments that will propel overall growth of Indian Pharma market.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions
You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!
