Indian Pharma : Time to swallow a bitter pill

Indian Pharma along with Indian IT is the most unloved sector when the market is near its all time high with the Nifty at 9,000+. We get interested in well run companies when they re available at attractive prices. The prices could be attractive from a PE multiple or attractive from a psychological level i.e. close to their 52 week lows. We found some interesting names and are looking at them as portfolio after investing the company specific issues.

We analyzed the following pharma companies, looking at their current price in relation to their 52 week low.

We used the data from Google Finance, considering the closing price as of 4-Apr-17.

Price = Closing price as of 4-Apr-17

H52 = 52 week high price

L52 = 52 week low price

Price/L52 = Price/Low 52 -1

MCap = Market Cap (Rs cr)

Company Name Price H52 L52 Price/L52 PE MCap
Sun Pharma 668 854.95 571.9 17% 21.63 160,020
Lupin 1415.3 1750 1382.6 2% 21.91 63,993
Cipla 590.3 621.25 457.45 29% 47.76 47,426
Cadila Health 451.5 466.85 304.2 48% 33.89 46,308
Dr Reddys Labs 2637.1 3689.85 2555.2 3% #N/A 43,812
Aurobindo Pharm 655.35 895 621.9 5% 16.42 38,352
Piramal Enter 1955 2097 1041.25 88% 30.08 33,795
Torrent Pharma 1465.5 1769.5 1194.1 23% 24.48 24,837
Glenmark 872.05 994 730 19% 23.65 24,618
GlaxoSmithKline 2715 3818 2600 4% 70.21 23,000
Biocon 1101.6 1162.9 531.7 107% 26.67 22,035
Divis Labs 655.5 1381.6 611.45 7% #N/A 17,394
Alembic Pharma 617.1 699 514.5 20% 29.02 11,745
Wockhardt 762.5 1129.05 627.2 22% #N/A 8,450
Ipca Labs 635.35 657.6 404 57% 107.39 8,047


Categories: Stock Views

Tags: , , , , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: