2 Stocks From Pharma Sector Showing Upside Potential, Buy For High Returns, Says Geojit

Leading brokerage firm Geojit has picked 2 pharma sector stocks with a "Buy" tag. These 2 stocks are Strides Pharma Science Ltd. and Aurobindo Pharma Ltd. The brokerage rated the "Buy" with an attractive target price. It sees robust gains of up to 24% if purchased at the current market price. Check below to know more:

Strides Pharma Science Ltd - Stock Performance & Potential Upside

Geojit assigned a "Buy" to Strides Pharma with a target price of Rs 363/share for 24% potential gains. The stock is currently trading at Rs 294.55/share on NSE.

The stock has given negative returns in the past 5 years. It has fallen 1.24% in 1 week, and 1.62% in 1 month respectively. It has fallen 7.74% in 1 year, 36.3% in 3 years, and 56.5% in 5 years, respectively.

Its 52 week low is Rs 263.35/share and 52 week high is Rs 392/share, respectively. This is a small-cap stock having a market capitalisation of Rs 2,656.71 crore.

Strides Pharma Science Ltd - Brokerage's Comments

According to the brokerage, New launches from the Endo portfolio in the US and focus on cost optimisation will drive earnings ahead. Outlook for the other regulated markets continues to remain robust given strong order book visibility. "Improving balance sheet and revenue pick-up in Stelis' revenues bodes well for the company. Hence, given our positive outlook, we upgrade our rating to 'Buy" based on 13x FY25E EPS and target price of Rs.363" Geojit has said.

About the Company - Strides Pharma Science (STAR) is an R&D focussed, vertically integrated pharmaceutical company with an experienced management team having presence across multiple therapeutic segments.

Aurobindo Pharma Ltd - Stock Performance & potential Upside

Geojit recommended "buy" the stock of Aurobindo Pharma with a target price of Rs 554/share for a potential gain of up to 18%. The stock is currently trading at Rs 471.95/share, up 2.61% from its previous close.

The stock has gained 3.01% in 1 week, and 13.73% in 1 month. However, it has fallen 22.54% in 1 year, 7.51% in 3 years and 22.14% in 5 years, respectively. Its 52 week low is Rs 397.20/share and 52 week high is Rs 727.95/share, respectively. This a midcap stock having a market capitalisation of Rs 27,398.49 crore.

Aurobindo Pharma Ltd - Brokerage's Comments

Geojit said, "In the coming quarter, we expect margin to remain under pressure as R&D expenditure is expected to be elevated. However, the company's new products and upcoming projects are likely to support its long-term performance. In addition, the US business is recovering, and sales has increased due to higher demand, volume and stable price."

It added, "The US is expected to follow the trend in the coming quarter and fiscal year. Therefore, we remain optimistic about the stock and retain our BUY rating with a revised target price of Rs. 554 based on 12x FY25E adjusted EPS."

About the Company - Aurobindo Pharma Ltd (ARBP) is a leading pharmaceutical company that is vertically integrated with business units engaged in formulations, custom synthesis, peptides, R&D and API.

Disclaimer

The stocks have been picked from the brokerage report of Geojit Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.