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Aurobindo Pharma Ltd, which released its Jul-Sep earnings today, and Wockhardt Ltd, which is expected to announce its September quarter earnings on Nov 14, are two stocks that are likely to see action in the coming week. Aurobindo Pharma, gave positive results, and could see uptrend in its stock. Strong foreign exchange gains and robust growth in sales helped Aurobindo Pharma report Jul-Sep net profit of 2.38 bln rupees compared with loss of 418.8 mln rupees a year ago.
Results of those pharmaceutical companies such as Ranbaxy Laboratories and Cipla Ltd that have declared Jul-Sep results so far have already been factored in in their share price, so they are likely to see rangebound action next week. The pharma sector, however, as a whole, is set to outperform the broader market in the coming week following better-than-expected quarterly results for many of the companies. In coming days, focus would also be on likely decision by the government on the National Pharma Pricing Policy which will affect foreign pharmaceutical companies negatively, more than it would do to its Indian counterparts.
Last month, a Group of Ministers formed to decide the National Pharmaceutical Pricing Policy recommended that the weighted average price of all drug brands with over 1% market share in a segment should be fixed as the ceiling price of that particular drug. On Thursday, the Cabinet deferred a final decision on the same.
