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Business Standard
4 days ago
- Business
- Business Standard
Nifty Pharma down 1.5%: Granules, Biocon lead with over 2% fall; Here's why
Shares of Indian pharmaceutical companies fell on Wednesday after US President Donald Trump hinted at as much as a 250 per cent tariff rate in 12 to 18 months. The Nifty Pharma index declined as much as 1.4 per cent on Wednesday, dragged down by losses in Granules India, Laurus Labs, and Biocon, each falling over 2 per cent. Gland Pharma was the only stock in the index to trade in green after announcing its first-quarter results. As of 11:05 AM, the pharma index was down 1.2 per cent, compared to a 0.37 per cent decline in the benchmark Nifty50 index. Divi's Laboratories (down 2.07 per cent), Glenmark Pharma (down 2 per cent), Abbott India (down 1.97 per cent), Zudys Lifesciences (down 1.7 per cent), and Mankind Pharma (down 1.34 per cent) were also dragging the index. Why did pharma stocks fall? The risk-off sentiment in Indian stocks deepened after US President Donald Trump's decision to raise tariffs on India "substantially in the next 24 hours" over its continued imports of Russian oil. He also said that tariffs on semiconductors will be set in the coming week. Specifically on pharma, Trump said that he will levy tariffs within the next week and added that these products will see their tariff rate jump as high as 250 per cent within 12 to 18 months. This comes after the US President imposed a 25 per cent tariff on Indian goods last week, which in itself will be a pain point to companies' bottom line. If pharmaceutical exports from India to the US come under a 25 per cent tariff bracket, the impact on earnings before interest, tax, depreciation and amortisation (Ebitda) could be around 5 per cent, according to analysts. Kotak Institutional Equities said that assuming a 25 per cent tariff on Indian pharma firms and baking in a nil pass-through, there could be a 0-27 per cent earnings per share (EPS) impact on generic drug exporters. High tariffs in pharma, particularly generics, are unlikely to sustain as those will drive higher outlays for US patients and drug shortages. Supply risks could be partially mitigated if the US comes out with an incentive scheme like India's production-linked incentive (PLI) scheme.
Time of India
28-07-2025
- Business
- Time of India
LuLu Group allotted land in Vizag, Vijayawada
Vijayawada: The state govt has allotted land to LuLu Group in Vijayawada and for setting up of mega shopping malls. The land was allotted through Andhra Pradesh Industrial Infrastructure Corporation (APIIC) on lease basis for a period of 99 years. Tired of too many ads? go ad free now The govt also allocated 532 acres to Laurus Labs for a pharma park. Laurus Labs informed the bourses that it has been allotted land at Rambilli Phase-II in Anakapalli district for the setting up of Laurus Pharma Zone that will house manufacturing units for pharma products. The company plans to invest Rs 5,630 crore in the project that is slated to provide employment to 6,350 people in three phases over an eight-year period. LuLu Group earlier expressed interest in setting up a mall in Visakhapatnam and the land was allotted to it by the previous TDP govt. However, the land allotment was cancelled by the subsequent YSRCP govt. LuLu has been given the same land where the original proposal was made to construct the mall. The 13.74 acres allotted to LuLu along the beach road will see the construction of a mega shopping mall in a 13.5 lakh sq ft built-up space. The project has been recognised as a special project with three-year lease exemption and land allotment will be done as per the state's tourism policy. The govt has directed the revenue dept and APIIC to resolve all court cases. In Vijayawada, 4.15 acres of land available with Andhra Pradesh State Road Transport Corporation (APSRTC) at old bus station has been allocated to LuLu Group for the construction of an integrated shopping mall with 2.23 lakh sq ft built-up space. Tired of too many ads? go ad free now The govt has directed the NTR district collector to look for alternative lands to relocate APSRTC installations and to compensate the corporation with the land that it is losing. Left parties and worker unions are opposing this move as it was in prime location. LuLu Group chairman MA Yousuff Ali said the mega shopping mall will generate over 7,000 jobs and contribute significantly to the economic development of North Andhra region. Meanwhile, retired IAS officer EAS Sharma has written a letter to chief secretary K Vijayanand, stating that allotting valuable land at low price to a private company is against the law and Supreme Court orders. He also claimed the land allotted to LuLu Group comes under CRZ limits. "The govt should not allot lands to private companies at its will. It should take 10% above the market rate if the land is to be allotted for the benefit of the public. The allotment should be investigated by the CBI," Sarma demanded.
Business Standard
28-07-2025
- Business
- Business Standard
Laurus Labs climbs on robust Q1 earnings
Laurus Labs jumped 6.44% to Rs 892.05 after the company's consolidated net profit zoomed 1,154% to Rs 163 crore, driven by a 31% rise in net sales to Rs 1,570 crore compared to Q1 June 2024. Gross margin improved to 59.4% in Q1 June 2025, up from 55.1% in Q1 June 2024. Profit before tax (PBT) stood at Rs 224 crore for Q1 June 2025, reflecting a 1,144% increase over Q1 June 2024. EBITDA was Rs 389 crore in Q1 June 2025, up 127% compared to Q1 June 2024. EBITDA margin rose to 24.8%, up from 14.3% in Q1 June 2024. In Q1 FY26, Laurus Labs Contract Development and Manufacturing Operations (CDMO) revenue more than doubled year-on-year to Rs 522 crore, driven by a 130% increase in small molecules revenue, although the bio-segment saw a 33% decline. Revenue from the Generics division rose 12% to Rs 1,048 crore, with APIs dipping 4% but finished dosages (FDF) surging 50%. Additionally, ARV revenues advanced 17% to Rs 647 crore during the period under review. Dr. Satyanarayana Chava, founder & chief executive officer commented: "We made healthy progress to start the year with increasing contributions from CDMO business and continued advancement of pipeline projects, supported by Generic FDF. We are moving ahead with strong focus on commercial execution realizing the full potential from promising pipeline opportunities, business development and rapidly enhancing scale and technology capabilities. We also commenced construction of various facilities across CDMO, Generics and FDF. Once complete, these facilities will fortify our ongoing commitment of being a high-quality development and manufacturing partner at scale including advanced therapies. We remain confident in our strategic direction and commitment as the source of sustainable value creation now and well into the future." V V Ravi Kumar, executive director & chief financial officer commented: "We delivered a solid performance in Q1, in line with expectations. We are pleased to see sustained growth momentum fueled by increasing uptake in CDMO deliveries and healthy business fundamentals. The EBITDA margins improved substantially to 24.8%, supported by continuing operating leverage. Gross margins stood strong at 59.4% due to favorable CDMO mix and ongoing process improvement initiatives. We will continue to invest fully behind high value business opportunities to drive near and long-term growth and returns for our shareholders." Meanwhile, the Government of Andhra Pradesh has allotted 531.77 acres of land in IP Rambilli Phase-II, Anakapalli District, to the company for the establishment of Laurus Pharma Zone (LPZ), where it plans to set up manufacturing units for pharmaceutical products. Laurus Labs has earmarked an investment of Rs 5,630 crore for this project, which is expected to generate employment for 6,350 people in three phases over eight years. This land allotment marks a significant milestone, securing a crucial component for the companys future expansion plans. Laurus Labs is a research-driven pharmaceutical and biotechnology company. It develops and manufactures select Active Pharmaceutical Ingredients (APIs) and Finished Dosage Forms (FDF) across anti-retroviral, oncology, cardiovascular, and gastro therapeutics. It offers end-to-end CDMO services, supporting innovators from early-stage development to commercial production.
Mint
28-07-2025
- Business
- Mint
Nifty Pharma Index rises 1% amid weak India Stock Markets: Cipla and Laurus Labs among key gainers
Stock Market Today: The Nifty Pharma Index gained more than 1% amid a weak Indian stock market on a day when the benchmark Nifty 50 Index dipped 0.3-0.4% during the intraday trades. Cipla and Laurus Labs stood among the key gainers The Nifty Pharma index, showing its resilience, gained more than 1% during the intraday trades. The Nifty Pharma Index, which opened at 22690.50 on Monday, went to scale highs of 22,908.40, marking gains of more than 1% over the previous day's close of 22662.70. Laurus Labs, with gains of more than 7%, followed by Cipla, with gains of close to 2%, stood among key gainers. Glenmark Pharmaceuticals and Gland Pharma also gained more than 1%, helping drive gains. Nifty Pharma and Healthcare index have been showing resilience amid volatile stock markets since last few weeks While Nifty Pharma & Healthcare are the lone warriors displaying outperformance amidst this downfall in the markets, we expect sectors such as IT, Defense, Oil & Gas, Realty & CPSE to appear bearish and may continue to underperform in the near term, given their weak price structures and lackluster momentum indicators., said Sudeep Shah, Vice President and Head of Technical and Derivative Research, SBI Securities Technically, Cipla, Apollo Hospital are likely to outperform in the short term, as per Shah. The Indian Pharma index performance is also being helped by strong Indian Pharma market growth. The IPM growth during the month of June 2025 stood at a strong 11.5%, as per reports. Glemmark Pharmaceuticals, JB Chemicals and Pharmaceuticals, Mankind Pharma FDC Ltd, Alkem, Zydus, and Torrent were among the key outperformers as per Nuvama. While the pharma market is growing, the challenge is provided by rising generic sales and Jan Aushadhi Kendras. However, amidst challenges, Within formulations, Sun, Cipla, Lupin and Emcure are the top picks. of Kotak Institutional Equities Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
28-07-2025
- Business
- Mint
Laurus Labs share price zooms 8% to record high after strong Q1; analysts raise target price
Laurus Labs saw its share price jump 8% in intraday trade on Monday, July 28, hitting a fresh all-time high of ₹ 901 apiece, even as the Indian stock market remained range bound. The rally followed the company's strong performance in its June quarter earnings, prompting analysts to raise their target prices for the stock. Domestic brokerage InCred Equities revised its target price upward to ₹ 850 from ₹ 640. However, the stock surpassed this revised target in today's session. The brokerage, however, maintained its 'Hold' rating, stating that the current valuation of 30x/24x FY26F/27F EV/EBITDA and 68x/46x FY26F/27F P/E already reflects most of the positives. InCred's FY26F/27F EPS estimates were revised upward by 9%/13%, with the brokerage noting that the earnings recovery is significant. Meanwhile, Choice Institutional Equities raised its earnings estimates by 2.6%/7.2% for FY26E/FY27E, introduced FY28E, and revised Laurus' valuation to 50x (from 40x) the average of FY27–FY28 EPS, citing stronger growth visibility relative to peers and anticipated expansion in margins and return ratios. This resulted in a revised target price of ₹ 1,025, while the brokerage retained its 'Buy' rating. 'We believe Laurus is evolving from a traditional generics player to a CDMO (synthesis)-led model, with the segment expected to contribute around 50% of revenues in the long term. Given the higher-margin profile of CDMO and operating leverage as new manufacturing assets ramp up and current underutilization narrows, it expects sustained margin expansion. "A strong CDMO order pipeline reinforces our long-term growth view," the brokerage said. InCred Equities stated that the company continued its recovery momentum for the third consecutive quarter, posting Q1 FY26 results that were above its estimates. The company reported a 30% growth, with gross margin improving by 430 bps QoQ/YoY (driven by a better product mix and lower raw material prices) and EBITDA margin expanding by 10 percentage points YoY to 24.3%, supported by improved gross margins and operating leverage. During Q1, the custom synthesis (CS) business recorded its fourth consecutive quarter of significant growth, delivering 130% YoY growth driven by several mid-to-late-stage NCE deliveries and contributions from human and animal health segments, which also boosted the company's consolidated revenue by 31% YoY to ₹ 1,570 crore. In the CS segment, the company is witnessing sustained demand for high-value integrated offerings, with the revenue mix shifting toward big and medium-sized pharma companies. The formulations business grew 50% YoY, supported by volume expansion in ARV and developed market sales, along with the execution of contracts entered into last year. Laurus Labs remains confident about stronger growth in FY26F and expects gross margin improvement from 55% in FY25 to 55–60%, led by an increasing share of the CS business. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
