A new variant of COVID 19 has been identified which was named Omicron by the World Health Organization (WHO). Many share trading analysts suggested that this new variant tends to spread quicker than the Delta variant and is much more infectious than other COVID variants.
Also, they said that the vaccines available now are less effective against this new variant. As we are trying to recover from the second wave, this omicron variant caused precariousness in the market.
If we talk about the current week, then we will get to know that the GDP for the July-Sept quarter of FY 2022 showed a total growth of 8.4%, which is the fourth consecutive quarter of positive growth post the major contraction.
If India wants to remain in the position of the fastest-growing economy in the year 2023, all restrictions are lifted and the growth continues to rise.
As said above, if the new strain emerges again, the government will take the necessary steps to bring back the restrictions.
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The pandemic has acted as a catalyst of a positive change to shape the healthcare sector across the world.
Here are some of the potential stocks you need to pay attention to in India as the new variant of concern spreads.
Cipla
Its product portfolio contains generics and medications in key helpful fragments.
In India, Cipla is one of the biggest pharma organizations and the biggest Indian exporter to developing business sectors.
During the pandemic, Cipla carried out 7 products as a piece of their Covid-19 portfolio. These incorporate medications, sanitisers, and antigen and counter antibody testing kits.
During the sensitive days of the pandemic, it went into various associations to advertise items in oncology, biosimilars, and metabolic illnesses.
Cipla saw a solid 12% year on year (YoY) development in income in the monetary year 2021 predominantly due to respiratory opening in the US and their Covid portfolio.
During a similar period, Cipla's (EBITDA) margin grew by more than 350 basis points to 22.5% from 18.9%. Lower expenses because of cost enhancement drives and lower on-ground activities because of lockdown prompted extension in margins.
The organization's net overall revenue remained at a notable high of 12.6% in FY 2021 against 9% in the monetary year 2020. Operational efficiency and lower finance costs because of prepayment of debt have prompted higher net margins
During the year, the company launched 9 abbreviated new drug applications (ANDA), filed for 8 ANDAs out of which it has received approval for the 7 ANDAs.
Alkem Laboratories
Alkem Laboratories is a multinational pharmaceutical company that primarily manufactures and sells pharmaceutical generics, nutraceuticals, in India and globally.
As per the sources, Alkem is considered the fifth largest Indian pharmaceutical company in terms of market share. As of now, the company has manufactured 20 facilities and 6 R&D facilities in India and US.
The company has more than 800 brands out of which 12 brands have annual sales of more than Rs 1 billion.
During the pandemic, the company’s operations were little affected. However, it saw a full recovery during the whole phase.
In 2021, the company’s total revenue grew up to 6.2% in FY 2021, which was 13.4% in the previous year.
Furthermore, the company has also experienced a drop in sales, which might affect the company’s growth. However, the company managed to recover as the sales growth was primarily supported by their international business.
The EBITDA margin for FY 2021 is 21.9%, which has grown from 17.72% from the last year.
Thyrocare Technologies
Thyrocare Technologies is an Indian multinational chain of diagnostic and preventive care technologies that are known for offering more than 279 tests and 79 profiles of tests to detect several disorders.
The company has a centralized processing laboratory where it fulfills the requirement of the customers. The company also operates regional processing laboratories in metro cities to ensure speedy processing.
Thyrocare has a network across India as it supports a logistic network and IT infrastructure.
The company further declared a revenue growth of 14% in FY 2021 because of an increase in the diagnostic revenue due to COVID 19 testing.
Dr Lal Pathlabs
Dr Lal Pathlabs is an international service provider and one of the top diagnostic chains in India. The company is located in Delhi.
It offers more than 5000 diagnostic tests, related healthcare tests and services across 3,705 centres.
During the lockdown, the company extended its reach digitally and physically to improve its covid testing.
The revenue of Dr Lal path labs grew by 18% in FY 2021 against a 10.6% growth in the financial year 2020.
The EBITDA of the year 2021 was marked at 29.3% as compared to the last year which was 27.5% in the last financial year.
The Bottom Line
The healthcare industry remains resilient even in the pandemic. However, the companies have also gone through losses but due to the demand for healthcare and antibiotics, these companies have managed to perform better than others.
Other sectors such as FMCGs, and eCommerce companies could also do the same.
The pandemic has completely changed business ethics and the way of doing business.
If you want to invest in good companies, pay attention to those companies that can leverage the changes happening in the economy and push their long term growth terms.
It is suggested to not try to time the market. Instead, invest in the companies that give you better stock market trading returns in the long term.
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