Broking firm Share khan has listed the stocks of pharma companies like Gland Pharma, Laurus Labs, Solara Active Pharma Sciences and Abbott India as its top picks from the midcap pharma space. The broking firm recently came out with its report on Q1FY2022 Results Review, in which highlighted the above mentioned midcaps as its top picks.
Growth levers intact for the pharma industry, says Sharekhan
Indian pharmaceutical companies are better-placed to harness opportunities and post healthy growth going ahead, says the brokerage.
"Indian companies are among the most competitive globally and hold a sizeable market share in most of the developed as well as other markets. Indian pharmaceutical companies have developed strong capabilities over the years, which are depicted in their inherent strength. Moreover, other factors such as 1) improving growth prospects in key regulated markets including US, increasing preference for specialty / complex generics and injectables 2) revival in the IPM which is expected to stage a double-digit growth in FY22, and 3) emerging opportunities in the API space would be key growth drivers," the brokerage has said.
Positive on the pharma space
"Considering a long-term horizon from April 2015 to March 2019 the healthcare index has underperformed benchmark indices, with the Nifty Pharma index reporting a negative return of 11%.
However, over the past one and half year, the healthcare index has bucked the trend, outperforming benchmark indices, yielding a sturdy 69% return as compared to a ~39% return clocked by the benchmarks. The strong outperformance is expected to continue going ahead as well and we see this extending to a multi-year bull run," the brokerage has said.
Top stocks buys from Sharekhan from the pharma space:
Large Caps: Cadila, Lupin, Dr Reddy's, Sun Pharma, Biocon, IPCA Labs
Mid Caps: Gland Pharma, Laurus Labs, Solara Active Pharma Sciences, Abbott India
Outperformers in Q1FY2022: Cipla, Laurus Labs, Gland Pharma, Caplin Point Laboratories
The above stocks are based on the report of Sharekhan. Investing in stocks is risky and investors should do their own research. The author, the brokerage firms or Greynium Information Technologies are not responsible for any losses incurred due to a decision based on the above article. Investors should hence exercise due caution as are at record peaks. Please consult a professional advisor.