INSUBCONTINENT EXCLUSIVE:
Reasonable valuations along with expectations of potential upside made pharmaceutical stocks buzzing among investors on Dalal Street as well
with a sector-specific scheme -- ICICI Prudential Pharma Healthcare and Diagnostics (PHD) Fund
The new fund offer will open for subscription on June 25
There are hopes that more institutional money will come into the pharma sector
Aditya Birla Sun Life has also applied with the markets regulator Sebi to launch a new scheme.
After underperforming benchmark equity index
during the last three years, the Nifty Pharma index has jumped 12 per cent in June so far, whereas Nifty is up around 0.13 per cent
cent this month, while Alembic Pharma, Lupin and Piramal Enterprises gained up to 20 per cent during the same period.
Largecap stocks,
including Sun Pharmaceuticals, Aurobindo Pharma and Glenmark Pharma, have climbed between 10 per cent and 16 per cent this month
Cipla and Cadila Healthcare rallied 15 per cent each during the same period.
The Nifty Pharma index corrected more than 20 per cent over the
past three years (after 30 per cent CAGR over FY11-15)
Hit by regulatory clampdowns, channel consolidation in the US and increased competition had kept pharma stocks under pressure
for largecap pharma companies, driven by actual and likely regulatory resolutions, moderating price erosion and several product launches
across generic and specialty categories in 2HFY19
March quarter result of pharma companies remained weak with continuing pricing pressure in the US generic business, the solace was the
pickup in domestic business and emerging markets business, according to Sharekhan
Most pharma companies under our coverage universe are trading at 8-18x their FY2020E earnings
Industries received positive news recently, with the US Food and Drug Administration (FDA) clearing its Halol plant, which had been under
supply restrictions due to quality control failures.
The company will now be able to restart supplies to its largest market, the US, from
Sun Pharma with a target price of Rs 574
I think pharma has started a move again so that also one can look at
The only space in pharma to avoid is the leverage bets where there is too much leverage on the balance sheets
It will take some time to work out but otherwise, there are a lot of companies which are turning around
itself as a global manufacturing and research hub in the pharmaceutical space
India contributes nearly 10 per cent of the world production volume and 50 per cent of its revenue comes from exports
ICICI Prudential AMC.
Sanjiv Bhasin of India Infoline suggested that an investor should make an SIP in Dr Reddy, Sun Pharmaceutical, Lupin,
