Orchid Pharma Q2 Results Review - Inline Revenue, Gross Margins Come Higher: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Orchid Pharma Ltd. reported revenue (Rs 2,227 million, up 12% YoY but down 8.9% QoQ) was lower than expectations (3% lower), while operating Ebitda stood at Rs 303 million, up 30.1% YoY but down 6.6% QoQ. Ebitda and net earnings were higher 22% and 33% respectively versus our expectation led by a 250 bps QoQ gross margin expansion. Revenue growth for the quarter was lackluster, but growth rates should pick up as multiple new commercialization initiatives should start reflecting in financial performance –commercialization of the new oral API facility, Commencement of operations in branded formulation business andcommercialization of Enmetazobactam in Europe and India. From a medium to long term growth perspective, 7-ACA and cefiderocol projects remain on track. .However, US and China commercialization is still awaited. Company is also looking to tap into generic ceftazidime / avibactam market outside the US, as it is working on a non-infringing route to gain an early entry. We tweak our estimates on Orchid Pharma and introduce FY27 estimates. We roll over to September 2026E EPS and recommend a buy with a target price of Rs 1,823 based on 45 times PE Multiple (50x earlier). FY27 earnings estimates include contribution from government incentives which will have limited longevity..Click on the attachment to read the full report:.Aurobindo Pharma, Shree Cement, Star Cement, Ramco Cements, Metropolis, GSPL Q2 Result Review: HDFC Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Orchid Pharma Q2 Results Review - Inline Revenue, Gross Margins Come Higher: Systematix

The brokerage recommends a 'Buy' with a target price of Rs 1,823 based on 45 times PE /multiple (50 times earlier).

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Orchid Pharma Q2 Results Review - Inline Revenue, Gross Margins Come Higher: Systematix

The brokerage recommends a 'Buy' with a target price of Rs 1,823 based on 45 times PE /multiple (50 times earlier).

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