Market Update 22 June 2021 – MM Forgings posts strong Q4

Private hospitals to see higher occupancy

  • Private hospitals are expected to witness revenue growth of 15–17% in FY22, as per rating agency Crisil. The growth will be supported by high occupancy due to pandemic-related cases in the first quarter of this fiscal.
  • As the second wave recedes, pent-up demand for non-pandemic treatments and elective surgeries are expected to support occupancy levels. The rating agency estimates occupancy levels to be around 65–70% versus 58% in FY21. Meanwhile, shares of major hospitals such as Apollo, Max Healthcare and Narayana Hrudayala were up in the range of 1–5% today. 

MM Forgings posts strong Q4

  • The automotive components manufacturer’s consolidated net profit grew 11-fold to ₹34.1 crore in Q4 from ₹3 crore in March 2020. The surge in profits was aided by a 77% rise in net sales to ₹292.5 crore, which provided high operating leverage.
  • As per reports, robust demand improvement in India and international markets helped MM Forgings to post a strong set of numbers. It was also able to improve its gross margins despite a sharp rise in prices of all key input commodities. Shares of the company surged by 11% today.

Dr Reddy’s launches heart drug in the US

  • Pharma major Dr Reddy’s has launched a generic version of the drug Vascepa in the US. The drug is used in treating patients with high triglyceride levels, related to heart disease. The launch came a day after the US Supreme Court rejected a bid by the drug maker Amarin Corp to revive six patents of Vascepa.
  • The total sales of Vascepa in the US was $598 million in 2020. US-based Amarin Corp markets the drug in the US. Shares of Dr Reddy’s were up 0.4% today and have gained over 17% so far this fiscal.

Cement prices rise in June

  • According to reports, pan-India cement prices have risen by 4% month-on-month in June. The price rise has been led by pent-up demand and government infrastructure projects.
  • In southern parts of India, the cement prices have gone up by 11% sequentially in June. However, the cement manufacturers are also facing cost pressures due to rising prices of inputs such as pet coke and coal. Shares of UltraTech Cement, Shree Cements and ACC gained in the range of 1–3% today.