Market this week 11-11-2023

Alembic Neutral; Motilal Oswal targets Rs 710.

Alembic Pharma’s (2QFY24) profits were marginally below expectations. The muted performance in the domestic formulation (DF) segment somewhat offset the improvement in the export formulation and API segment. We lower our FY24 earnings forecast by 6% in order to account for the following: a) the DF segment’s weak season impact; and b) the DF segment’s increased marketing and promotional spending.

We arrive at a TP of INR710 by valuing ALPM at 19x 12M projected earnings. Although all facilities concentrating on the US generics market are required to file an establishment inspection report (EIR), revenues are anticipated to increase with the introduction of new injectable and cancer product releases. To further improve development possibilities in the DF area, ALPM also intends to establish a division focused on high-growth medicines.

Amman Pharma and Lupin sign a licensing agreement for the biosimilar ranibizumab.

Major Indian pharmaceutical company Lupin Limited announced that it and Amman Pharmaceuticals Industries (Amman Pharma) have formed a strategic alliance for the exclusive marketing and commercialization of the biosimilar drug ranibizumab.

In the Middle East and certain other regions, including as Jordan, Saudi Arabia, the United Arab Emirates, Iraq, Lebanon, and other GCC nations, the medication is a biosimilar to Lucentis. The partnership seeks to increase MENA patient access to cutting-edge medical treatments.

The drug ranibizumab is used to treat and control macular edema and neovascular age-related macular degeneration (AMD). It is injected directly into the eye to prevent future damage to the retina by minimizing leakage and limiting the formation of aberrant blood vessels in the eye.

Zee Entertainment’s Q2 earnings reduces 5% to Rs 130 crore, while its stock declines 2%.

Zee Entertainment’s stock fell more than 2 percent during trading on November 10 due to lackluster Q2 results. Zee Entertainment’s stock was trading at Rs 258.23 on the NSE at 11:51 p.m.

Due to a poor advertising climate, media business Zee Entertainment reported a 3.3 percent drop in advertising sales at Rs 979 crore in the September quarter of FY24 on a year-over-year basis, compared to Rs 1,012.63 crore in Q2 FY23. Analysts had projected that Zee Entertainment’s ad revenues in Q2 FY24 would be Rs 977.1 crore, up from Rs 1,012.8 crore in Q2 FY23.

Profit after tax (PAT) for the company dropped 5.3% year over year to Rs 129.9 crore. In Q2, the company recorded total income of Rs 2,509.57 crore, while in FY23, the same period’s total income was Rs 2,040.87 crore. The broadcast business, which saw its revenues for the September quarter affected by the bad ad environment, is facing challenges as a result of the decline in ad spends by categories like edtech, fintech, food tech, and e-commerce.

Stock of Ramco Cements falls 5% as investors take profits following impressive Q2 earnings.

On November 10, one day after The Ramco Cements’ shares reached the 52-week high level (Rs 1,040 apiece on November 9, 2023), investors booked profits in the company’s shares. On November 10, the stock fell 5% to the day’s low of Rs 970 per share after the company released positive earnings for the July-September quarter (Q2FY24). As of 10:30 am, the S&P BSE Sensex was down 142 points, or 0.2 percent, at 64,689 levels.

This South African cement manufacturer’s stock has increased 17 percent over the last three months, while the benchmark Sensex has declined by just 1 percent.

Strong house sales and robust infrastructure expenditure in India helped Ramco Cements’ second quarter profit jump nearly nine times to Rs 101 crore, outpacing rising expenses. The company’s operational revenue increased by around 31% year over year to Rs 2,300 crore as a result of increased input prices and transportation expenses.

Despite strong Q2 net profit and revenue growth, AstraZeneca Pharma saw a 3% decline.

AstraZeneca Pharma India’s shares dropped more than 3% on November 10 as a result of news that the parent company’s COVID-19 vaccine is being challenged in court in the UK. This news overshadowed the company’s impressive third-quarter results.

The pharmaceutical company recorded an outstanding gain and a stronger topline, driving a 60.8 percent year-over-year increase in profit to Rs 52.4 crore. To reach Rs 311 crore, revenue climbed by 31.7 percent.

The board also authorized Hooi-Bien Chuah’s appointment as an Additional Director (Non-Executive) of the company, effective November 9, 2023, in addition to the Q2 earnings. Since April 2021, she has served as AstraZeneca’s Asia Area Legal Director.