Nifty Pharma index surges 2% led by Natco Pharma, Glenmark Pharma, IPCA Laboratories

The pharma counter's impressive performance has created a lot of buzz in D-Street today. The Nifty Pharma Index increased by more than 2% on Friday's session, driven by gains in stocks including Natco Pharma, Glenmark Pharmaceuticals, and IPCA Laboratories Ltd. Strong Q3 earnings, an optimistic outlook, and recent news developments all contributed to the sector's positive sentiment. 

The Natco Pharma share price rose over 18% to touch a 52-week high following the firm revealed that it raised its guidance for profit after tax to above ₹1,200 crore from ₹1,000-1,200 crore before, in a post-earnings conference call on Thursday, as per report.

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“Natco Pharma beat consensus Q3FY24 revenue/EBITDA by 33%/84% led by higher gRevlimid share while RoW also picked up. India stays muted (-2% YoY). EBITDA margin at 35% (~10pp beat)—gRevlimid-led. We note a softer India and Agrochem in Q3FY24, but expect a pickup next year. We are raising FY24E/25E EPS by 21%/12% to factor in the beat, higher gRevlimid and lower tax; retain ‘BUY’,” said Nuvama Institutional Equities in its report. 

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The Natco Pharma share price opened at ₹891 apiece on the NSE and touched an intraday high of ₹1,048.45 and a low of ₹889.85 apiece.  

“Natco Pharma is one of the top performers up by 15% and has broken beyond key resistance. Expect this upmove to continue with dips getting bought; ₹1,000 is the support, whereas ₹1,130 is resistance,” said Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One.

The Nifty Pharma index's second biggest gainer was Glenmark Pharma. Glenmark Pharma share price was hovering around its 52-week high. Glenmark Pharma share price opened at jumped nearly 10% on Friday's trade. 

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Despite reporting a net loss of ₹330.8 crore for the third fiscal quarter, Glenmark Pharma predicted improved EBITDA and margins in the upcoming quarters in its management comments. The business intends to increase output at the Monroe location it recently purchased. Additionally, Glenmark plans to market two goods from this location.

“Glenmark has surprised by its move, as after initially starting the week on a weak note and making an intraweek low of ₹771, it has bounced back sharply in the last 2 sessions and is now up more than 4%. The bias remains positive, and traders can continue with the buy approach with immediate support at ₹850 and ₹930 resistance,” explained Bhosale.

Among the other top gainers were IPCA Laboratories, Biocon, Granules India shares, which gained 5% to 7% on Friday's session. 

Aurobindo Pharma share price was up by nearl 4% after the company declared that the US FDA concluded inspecting the Auro Peptides production facility in Telangana and  issued no observations.

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“The stock has not participated in today's move but has come off from its morning highs , no major view and the stock may remain range bound within ₹1,000 and ₹1,060 range,” added Rajesh. 

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