Pharma stocks on a roll; CNX Pharma index hits new high

Lupin, Dr Reddy's Lab, Cadila Healthcare, Torrent Pharma, Ipca Lab, Cipla and Wockhardt are up 1-5% on NSE.

Shares of pharmaceutical companies continued their upward march with the National Stock Exchange CNX Pharma index hitting a new high after most companies comprising the index reporting a strong earnings growth for the quarter ended June 30, 2014 (Q1).

Lupin, Dr Reddy’s Laboratories, Cadila Healthcare, Torrent Pharmaceuticals, Ipca Laboratories, Cipla and Wockhardt are up 1-5% on the National Stock Exchange (NSE).

CNX Pharma index, gauge of pharmaceutical companies, the largest gainer among sectoral indices, was up 1.3% at 9,323 at 1415 hours. The index touched a record high of 9,339 during intra-day trades. The benchmark CNX Nifty however, trading flat at 7,749.

Lupin, the largest gainer among pharma pack, has surged 5% to Rs 1,175, also its new high, after reporting a better-than-expected 56% year-on-year jump in net profit at Rs 625 crore for the quarter ended June 2014 (Q1), on back of strong growth in the US and in India. The drug maker had profit of Rs 401 crore in the same quarter last fiscal. Net sales grew 36% to Rs 3,284crore on yoy basis, Lupin said in a statement. Analysts on an average had expected profit of Rs 512 crore on sales of Rs 3,116 crore.

Dr Reddy’s Laboratories too, gained 3% to Rs 2,840 on reporting 52% yoy jump in consolidated net profit at Rs 550 crore on back of 24% growth in net sales at Rs 3,518 crore for the quarter ended June 2014. Gross profit margins improved by over 600 basis points to 59.3% against 52.8% in the same quarter last fiscal.