Shares of pharmaceutical companies were in demand on Monday. Shares like Aurobindo Pharma and Glenmark Pharmaceuticals were up 5% and 4% respectively. The Nifty Pharma Index declined by 17% from its all-time high of 14,398 levels due to the recent sell-off. According to experts, the index might see some upside in the near term with more promising returns.
As per a research report dated 17 March 2022, 5paisa.com has recommended the following stocks in the pharma sector:
Dr Reddy’s Laboratories Ltd
It is an Indian large-cap multinational pharmaceutical company that manufactures and markets a wide range of pharmaceuticals in India and overseas. Its key Products/Revenue Segments include Pharmaceuticals, Licence Fees, Spent Chemicals, Other Operating Revenue, Service Income, and Scrap. 5paisa has given a buy call on the company’s shares.
- CMP: ₹ 4,021.00
- Recommendation: Buy/Add
- Target Price: ₹ 5,000.00
- Upside: 24.34%
- EPS CAGR (FY22-24ii): 31%
- ROE FY21: 15.7%
- ROE FY 22ii: 15.3%
Aurobindo Pharma Ltd
It is a fully integrated pharma company that features among the top 2 companies in India in terms of consolidated revenues. It exports to more than 155 countries all over the world and derives 90% of its revenues from international operations. Recently, it has bagged a license to manufacture Pfizer’s COVID-19 drug, and its price has soared by 6.86% today.
- CMP: ₹ 680.00
- Recommendation: Add/Buy
- Target Price: ₹ 800.00
- Upside: 17.64%
- EPS CAGR (FY22-24ii): 18%
- ROE FY21: 16.6%
- ROE FY 22ii: 11.6%
Zydus Lifesciences Ltd
Cadila Healthcare Limited was renamed Zydus Lifesciences Limited after which the stock corrected by 28% from its 52-week high in January and by another 28% in March. The company is primarily engaged in the manufacturing of generic drugs. It manufactures pharmaceuticals, diagnostics, skincare products, herbal products, and other OTC products. It ranked 100th in the Fortune India 500 list in 2020.
- CMP: ₹ 368.00
- Recommendation: Add/Buy
- Target Price: ₹ 470.00
- Upside: 27.71%
- EPS CAGR (FY22-24ii): 14%
- ROE FY21: 0%
- ROE FY 22ii: 0%
Glenmark Pharmaceuticals Ltd
Glenmark Pharmaceuticals is an Indian pharmaceutical company that initially sold its products in India, Russia, and Africa. Its generics business services the requirements of the US, western Europe, and other developed markets. It recently received final approval from the United States Food and Drug Administration (FDA) for Lacosamide tablets, after which its shares gained more than 2% today.
- CMP: ₹ 456.85
- Recommendation: Add/Buy
- Target Price: ₹ 620.00
- Upside: 35.71%
- EPS CAGR (FY22-24ii): 17%
- ROE FY21: 14.1%
- ROE FY 22ii: 13.8%
Alkem Laboratories Ltd
It is an Indian multinational pharmaceutical company that manufactures and sells pharmaceutical generics, formulations, and nutraceuticals. The shares are up for the third straight session today. They are quoting at ₹3,494 levels today and the stock is up 33.33% in the last year, as compared to a 15.02% jump in the Nifty Pharma Index.
- CMP: ₹ 3,496.85
- Recommendation: Add/Buy
- Target Price: ₹ 4,150.00
- Upside: 18.67%
- EPS CAGR (FY22-24ii): 16%
- ROE FY21: 22.9%
- ROE FY 22ii: 21.0%
Disclaimer
The views and investment tips expressed by 5paisa.com on tradebrains.in are their own and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author is not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
