Nomura has selected three stocks from pharma and healthcare sectors viz. Dr Reddy’s Laboratories, Medplus Health Services and Dr Lal Pathlabs.
Ensuing US tariffs present near term headwinds for stocks exposed to the US market and the companies will likely pass the impact. Profitability is supported by benign raw material prices, stable pricing conditions in the US and favorable currency and price increases in India. Hospitals to see a moderation in EBITDA margin expansion due to capacity expansion. Diagnostics and pharmacy to do well on sustained market share shift from unorganised to organised players and some ease in competitive pressures.