Pharma Sector on a Turnaround, Shows Signs of Booming

In March 2009, the Pharma Index was trading at 2020. For the next 6 years until
March 2015, Pharma had a continued rally to make a high of 14,020. Thereafter in
March
2016,
the
Pharma
Index
witnessed
highest
correction in 7 years
to make a low of
10,353. Currently it
stands at 11,100.
The Pharma Sector has
been
all-time
performer. However,
the recent USFDA
inspections
have
caused a few hiccups leading to correction. As most Pharma companies export in
bulk and Rupee is currently at its all-time low (Dollar appreciation against Rupee),
the Pharma sector has witnessed buying and profitability.
Rise in share price of major Pharma companies post Budget (since Feb
2016):
Stocks
ASTEC
RPG LIFE
JUBILANT
BROOKS LAB
THEMIS MEDICARE
PIRAMAL PHYTOCARE
BIOCON
CAPLIN POINT
NEULAND LAB
HESTER BIOSCIENCES
PIRAMAL ENTERPRISES
HIKAL
SHILPA MEDICARE
DISHMAN

Current Share Price

(in Rs.)
598.55
502
711.9
149.1
596.3
100
925.05
368
1009
715.5
1673.7
225
664.9
239.15

Rise in share
price (%)
237.12
141.06
133.26
109.26
108.31
104.29
97.03
95.91
92.72
85.8
84.31
80.14
67.29
60.67

MERCK
AMRUTANJAN
SYNGENE
NATCO PHARMA
JB CHEMICALS
ORTIN LAB
AJANTA PHARMA
LAL PATH LAB
AARTI DRUGS
ALKEM LABORATORIES
UNICHEM
LINCOLN PHARMA
GUFIC BIOSCIENCES
PANACEA BIOTEC
MARKSANS PHARMA
CADILA
SMS PHARMA
STRIDES SHASUN
DIVIS LAB
SPARC
FDC
GLENMARK
KOPRAN
BAL PHARMA
SUVEN
PARABOLIC DRUGS
VENUS REMEDIES
KILITCH DRUGS
AUROBINDO PHARMA
TORRENT PHARMA
COUNTRY CONDOS
IND SWIFT
CIPLA
SYNCOM HEALTHCARE
BAFNA PHARMA
FORTIS
ALCHEMIST
IND SWIFT LAB
BLISS GVS
DR REDDYS
JAGSONPAL PHARMA
ALEMBIC PHARMA
ALEMBIC
TTK HEALTHCARE
GRANULES

998
559.4
580.3
607.3
350.25
21.75
1862
1180
637.5
1715
266.9
197
48
124.25
44
396.4
97
1098
1169.75
316
216.35
878.3
50
102.3
180.75
7.35
98
38.5
741.65
1420.45
4.3
6
570
6.7
29.3
179
22.4
38.1
157.4
3206
34.8
649.15
35.65
901.2
109.15

52.77
47.91
46.73
46
44.64
43.09
43.01
42.74
38.03
35.61
34.73
34.52
27.83
27.83
26.26
26
25.08
24.84
23.06
22.41
20.13
19.39
18.91
18.27
18.1
17.6
17.08
16.31
13.12
12.64
11.69
11.11
10.86
10.74
7.13
6.96
6.67
6.57
6.21
5.59
5.14
5.03
3.94
3.34
2.73

SANOFI INDIA
WANBURY
IPCA
ABBOTT INDIA
ARVIND REMEDIES

4391.2
39.55
572.35
4846.05
4.65

1.7
1.41
1.35
1.25
1.09

The Indian pharmaceutical sector has the potential to grow and increase to the
size of 300 billion dollars by the year 2030 from the current 15 billion dollars
provided it accords high priority on quality and R&D - research & development,
chief executives of top pharmaceutical companies stated.
They said that the Indian firms must foster innovation and develop products for
the benefit of the patients adding that companies must address quality compliance
challenges and inculcate quality culture in the organisations to develop high
quality medicines for all the markets.
Conclusion:
The Pharma Sector is showing a turnaround and many Pharma stocks are hitting
52 week highs. It was only today that Syngene share price touched 52 week high.
This is creating an opportunity for other Pharma stocks to do well since the entire
sector is performing well. It is an excellent time for Pharma stock lovers to invest.
Dynamic Levels Research Analysts have recommended the following multibagger
Pharma stocks which can be great for investment:
Jubilant
Syngene
Hikal
Neuland Lab
RPG Life
Piramal Enterprises
Lincoln Pharma

Disclaimer
The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the
research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment
decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

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Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/ Research
Analyst/ his Relative:
Do not have any financial interest / any actual/beneficial ownership in the subject company.
Do not have any other material conflict of interest at the time of publication of the research report
Have not received any compensation from the subject company in the past twelve months
Have not managed or co-managed public offering of securities for the subject company.
Have not received any compensation for brokerage services or any products / services or any compensation or other benefits
from the subject company, nor engaged in market making activity for the subject company
Have not served as an officer, director or employee of the subject company

Article Written by
Salman Hashmi