Indian Pharma Stocks: Cheap or Not

Indian Pharma is down in the dumps and does not see any hope for a turnaround around any time soon. However, analyzing the Pharma companies namely  we were intrigued to see the valuations from a price to book perspective.  Seeing a price to book ratio in FY 19 of around 2 for companies like Dr Reddy’s, Aurobindo Pharma, Lupin, Cipla and Glenmark make it interesting at some time in the future. For FY 20 only Cadila Health and Laboratories will have a price to book of more than 3, while Sun Pharma Dr Reddy’s, Aurobindo Pharma, Lupin, Cipla and Glenmark will have a price to book of around close to 2.

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We are not suggesting anything related to the pharma pack. Its just an observation which we are sharing

Reference: Indian Pharma : Time to swallow a bitter pill

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