Best Indian Pharma Companies for Investment Poll

As we are all aware Pharma Index has under performed from last 2-3 years.

We believe FY18 might continue to be challenging but long term story of Pharma sector is strong.

Indian Traders Den is doing a poll to identify which stocks the members feel are likely to give good returns from 1-2 year perspective from Pharma Space.

In the poll top Indian Pharma Companies are included..

In the comments sections members can always give rationale for why they chosen a particular stock in poll.

Thank you for participation in poll in advance.This is beneficial for all at no cost.

Which Indian Pharma Company Stock is best for Investment with 1 -2 year Returns Outlook

  • Lupin (28%, 48 Votes)
  • Aurobindo Pharma (21%, 36 Votes)
  • Sun Pharma (13%, 22 Votes)
  • Glenmark (10%, 17 Votes)
  • Others (5%, 8 Votes)
  • Biocon (4%, 7 Votes)
  • Wockhardt (3%, 5 Votes)
  • Cadila (2%, 4 Votes)
  • Alembic (2%, 4 Votes)
  • Natco (2%, 3 Votes)
  • Strides Shasun (2%, 3 Votes)
  • Pfizer (2%, 3 Votes)
  • Dr Reddy's Lab (1%, 2 Votes)
  • Ajanta (1%, 2 Votes)
  • Torrent Pharma (1%, 2 Votes)
  • Abott (1%, 2 Votes)
  • Cipla (1%, 1 Votes)
  • Sanofi (1%, 1 Votes)
  • Glaxo (1%, 1 Votes)
  • Divi Labs (1%, 1 Votes)
  • Pirmal (1%, 1 Votes)
  • Alkem (1%, 1 Votes)
  • Sanofi (0%, 0 Votes)
  • Ipca (0%, 0 Votes)
  • Pfizer (0%, 0 Votes)

Total Voters: 174

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Comments

    • Glenmark & Lupin is very strong buy and would even prove to be defensives in case any general market crash….! Good Companies with pressures from USFDA, will come out of this – good companies always does it time and again. When they come out of these regulatory pressures, the stock price of this company will indeed look quite expensive and one may vote for the same at that time 🙂

  • Glenmark has cheapest Price to Sales around 1.69
    but Aurobindo has better growth rate and expected to grow more with launches

    • Aurobindo has the potential to touch 2,000 within 3-4 years
      Also, look at the Cash reserves of 1000 cr plus

      • Dear Chetan.
        I agree with your views on Aurobindo every dip from current levels of 640 is a good price to enter

    • Yes Lupin should be a very good buy at current levels of 900 for decent upward moves in the coming 2-3 quarters.

    • It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price as per Buffett
      No one knows the exact bottom but Lupin for sure is a wonderful company.
      As per our model bottom could be 700 to 800 range

  • In the week ended November 17, the Nifty Pharma index was down 0.83 percent and in last 1-year it was slipped 14.8 percent closed at 9,161.80.

    There are top five pharma stocks where brokerages have maintain positive stance post Q2 results which can give up to 30 percent upside in the next one year time.

    Sun Pharma | Brokerage: Credit Suisse | Rating: Outperform | Target: Rs 595 | Return: 15%

    According to Credit Suisse the results during the previous quarter were weak impacted by deferred US sales. It believes that the margins is likely to improve in the second half, expecting the company to beat margin guidance of 20- 22 percent.

    The company does not yet received the Halol inspection dates but expects it to be in the current quarter, it added.

    The firm has but earnings per share by 3 percent for the current financial year, which is driven by weak US sales. The demerger of part of Global FZE could sustain lower tax rate, it added.

    Cadila Healthcare | Brokerage: Prabhudas Lilladher | Rating: Accumulate | Target: Rs 519 | Return: 16%

    Prabhudas Lilladher said the US and India traction lead to previous quarter surpassing estimates, while sustainability is going to drive the valuation of the company.

    It believes that the key launches to drive the US generic growth in the second half and the next financial year. Also expecting benefits of exclusive launches to significantly improve headline margins.

    Marksans Pharma | Brokerage: IDFC Securities | Rating: Outperformer | Target: Rs 51| Return: 25%

    In the second quarter the weak gross margins offset strong revenue growth, while there are higher revenues in Europe/US, said IDFC Securities.

    The pace of recovery to be muted on account of pricing pressures in the US market.

    The key triggers include continues improvement in UK, ability to increase client penetration in the US and securing new softgel ANDA approvals, said IDFC Securities.

    Dr Lal PathLabs | Brokerage: Citi | Rating: Buy | Target: Raised to Rs 1,110 from Rs 1,020 | Return: 23%

    According to the research house the September quarter was a solid quarter with margins holding up despite Goods and Services Tax.

    The growth and margin outlook is encouraging and expecting strong, multiyear growth in revenues and profits over the long term, it added.

    Torrent Pharmaceuticals | Brokerage: CLSA | Rating: Buy | Target: Cut to Rs 1,640 from Rs 1,660 | Return: 30%

    According to CLSA the acquisition valuation of Unichem’s domestic business is in-line with past deals. The said acquisition to be earnings per share accretive by March 2021 which hinges on its ability to accelerate the sales growth of key Unichem brands.

    In the quarter ended September the India and Europe business were strong, while the Brazil, US and CRAMS were weak. The target is cut to factor lower US and Brazil sales.

  • My thoughts on the pharma sector. Am invested in the pharma sector so obviously am biased:

    Whenever I venture to the local markets, there are few shops which are always brimming with “customers”. One is medicine shops and the other liquor shops. I am invested in both sectors and consider pharma a part of the “consumption” basket like FMCG. It will protect the portfolio to some extent hopefully when the next market crash happens.

    The USFDA issues, consolidation and thereby strong negotiation of the US buyers and less opportunity for first filers are all known issues. Markets have already discounted them. Markets follow cycles and pharma had a very good run in the past few years and share prices are consolidating now and I expect them to be much higher in the next 5-10 years.

    India’s cost of production is nearly 33% lower than US. India has the 2nd largest number of USFDA approved manufacturing plants outside the US. Plus highly skilled labour force. Very difficult for other countries to compete with India.

    As someone mentioned, increased longevity will result in more need for medicines. Lifestyle diseases are increasing at a rapid pace.

    There are lot of opportunities in India itself. “Generic generics” is just noise, impossible to implement. Major risk is NLEM but we can live with it. We rank 147 out of 184 countries in healthcare spending. India spends 1% of its GDP on healthcare compared to 18% for the US. Glaxo would not have committed to investing 1000 crores if it didn’t see opportunity in the future. There are few pure India focussed players available like Alkem (somewhat), Eris (no exports and no plans) if you want to bypass USFDA risks.

  • Now this poll is making sense..indian pharma stocks are set to rebound;thanks to this poll we invested at near about bottom

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