Nifty Pharma gains driven on robust growth environment; Cipla, Sun Pharma top stock picks

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Also read- Q2 result preview: Strong US performance to lift the show for pharma companies The Indian Pharma market grew 8.6% year-on-year in September 2023 suggested Motilal Oswal Financial Services report. The September growth rate was encouraging since IPM had grown at a tepid rate of 5.8% in August 2023. The growth rate is also higher than 6.5% in September’ 2022.

Analysts said that the growth was majorly driven by the price hikes of about 4.6% though 2.8% rise in volumes and 2.9 % YoY rise in new launches. With growth picking up in September’2023 the growth rate for the 12 months ending September’23, also improved to 10.3% YoY. The positive, however, remains that acute segment that had also seen softness in growth, however, has been rebounding.

The decline in acute segment sales as that of pain relief, anti-bacterial, respiratory products etc. was due to seasonal factors as monsoon remained scanty leading to dry spell in August and also high base of last year. The Acute segment’s share in overall Indian Pharma market was 62% for twelve months ending September’2023, with year-on-year growth of 10.3%.

The chronic segment (38% of IPM) grew 11.6% YoY. Also Read- Israel war unlikely to impact India’s pharma trade, says Pharmexcil With the revival of growth in the IPM, both domestic and multinational pharma companies in India are experiencing positive growth in the month of September’ said analysts at Motilal Oswal Financial Services. The analysts at Kotak Institutional equities said that, “Even as improved US generics pricing is a respite, a sustained momentum in domestic sales is critical to drive overall growth for our formulations coverage.