Religare Institutional Research expects another strong quarter from pharma companies, boosted by niche launches in the US and domestic growth recovery. ''We expect PAT growth of 28% YoY, trailing EBITDA (37%) due to higher taxes. Revenue traction remains robust (23%), benefitting from higher rupee realization. Improving visibility on revenue growth, even off a high base, would instil further confidence. LPC & Sun Pharma remain our top picks,'' it said.

''Recent USD depreciation raises concerns over sustainability of margin improvement in export-focused pharma companies. We believe margin gains have been largely structural in nature due to differentiated US launches and operating leverage,'' said Religare.

''Hence, there would be no material earnings downgrade (1-3%) for key companies even if the USD:INR touches Rs 58. However, levered companies (Aurobindo, Glenmark Pharmaceuticals, CDH) with high exposure to USD denominated loans would benefit from MTM gains and potential lower outgo towards repayment,'' it added.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.