Q4FY2019 Earnings Preview – Pharma sector | Sharekhan

Purvi Shah, AVP Research presents the Q4FY2019 earnings preview and preferred investment picks for the Pharma sector.

Q4FY2019 Pharma preview: Low base to aid performance; Maintain neutral stance.

· Improved performance expected in Q4FY2019 for the pharma sector on account of a low base. The sector will witness its second improving quarterly performance despite pricing pressure. Softening of raw material prices will help mitigate some of the margin pressure.

· Valuation wise, the companies under our coverage are trading in the range of 11x-26x FY2020E earnings, which is on the higher side. Management commentary and outlook for FY2020 will be key to watch for.

· Hence we continue to maintain our neutral stance on the sector and see an opportunity in select quality companies as investment options.

Preferred Picks in the sector: Divis, Biocon, Granules

Tune in to know more.

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