Zydus Lifesciences Ltd. shares surged more than 9 percent intraday on Monday after positive brokerage commentary on better-than-estimated financial results for the December quarter.

Share Market Live

NSE

InCred Capital in a note termed Zydus Lifesciences as a Top Pick since the company has reported a strong set of numbers for the December quarter and the outlook on the company is strong. The brokerage raised the target price to Rs 593, showing an upside of 36 percent over the last close.

The management during the earnings call stated that the United States, India, and API businesses were the main growth drivers in the December quarter. The domestic branded business expanded by 14 percent year-on-year and the management expects the momentum to continue.

While Revlimid generic, used to treat patients with multiple myeloma and mantle cell lymphoma, is likely to make bigger contributions ahead, the fiscal year 2024 is expected to see the launch of three trans-dermal products and two partnered products.

The company will also be launching limited competition products in the second and third quarters of the fiscal year 2024.

It also stated that the Opsumit generic (hypertension) could generate up to $100 million in revenue across the fiscal years 2024-25.

Another brokerage, Motilal Oswal rated the stock as neutral and set a price target of Rs 460. It also raised the current fiscal year earnings estimate by 11 percent and the next fiscal year earning per share (EPS) estimate by 11.5 percent and the fiscal year 2025 EPS by 9 percent as the company is expected to gain traction in niche generics

Zydus Lifesciences’ Q3 financial results were above CNBC-TV18's estimates, compiled from various analysts, on all parameters. Revenue increased 20 percent from last year while the EBITDA margin expanded 130 basis points.

Shares of Zydus Lifesciences are trading 8.25 percent higher at Rs 470.50.

(Edited by : Rukmani Krishna)

First Published:Feb 6, 2023 1:38 PM IST