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