Nifty Pharma hits all-time high; 10 stocks including Lupin, Cipla, Glenmark Pharma, Divi’s Labs touch one-year peaks
In today's trade, Lupin's shares soared nearly 7%, hitting a new all-time high of ₹1,404 apiece after Japanese brokerage firm Nomura raised the target price on the stock to ₹1,593 apiece from the previous ₹1,290, maintaining its 'buy' recommendation.
Amidst a sea of red in the broader market, pharmaceutical stocks shone bright in today's trading session, with the Nifty Pharma index hitting a new all-time high of 17,251 points, marking a 3% surge.
19 out of the 20 stocks on the index finished the trade in the green, and 10 of them hit their new 52-week highs. The pharmaceutical sector has been performing exceptionally well in recent quarters, with the rally attributed to factors like improved performance in the US generics market, strong results in branded markets, reduced raw material costs, and market share gains in recently launched products.
In today's trade, Lupin's shares soared nearly 7%, hitting a new all-time high of ₹1,404 apiece after Japanese brokerage firm Nomura raised the target price on the stock to ₹1,593 apiece from the previous ₹1,290, maintaining its 'buy' recommendation.
The brokerage has an optimistic outlook on Lupin, largely driven by the company's robust US pipeline and growth in the India business. It expects the product launch in the United States and expansion in India, emerging markets (EMs), and Europe to drive margin improvement.
Similarly, Cipla's shares touched a new 52-week high of ₹1,285 apiece, breaking a two-day losing streak.
Other stocks such as Glenmark Pharmaceuticals, Aurobindo Pharma, Divi's Laboratories, Sun Pharmaceutical Industries, Granules India, GlaxoSmithKline Pharmaceuticals, Laurus Labs, and Zydus Lifesciences have all achieved new one-year highs in today's trading session.
On the other hand, shares of Alembic Pharmaceuticals bounced back in today's trade by gaining 7.4% to ₹820.8 apiece, ending four straight days of weak performance. This came after the company said it received USFDA approval for eight drugs during the December quarter.
Also Read: Pharma Outlook 2024: How are Cipla, Sun Pharma, Dr Reddy's and others likely to perform this year?
"Many domestic-focused pharma companies are expected to generate mid-teen growth in CY24 amid a focus on new product launches, a pickup in volume growth, and improved demand for generics and branded products. To take advantage, pharma companies (Cipla, Torrent Pharma, Eris Lifesciences, and JB Chemicals, among others) have increased their chronic presence, focused on new product launches, and entered into new therapies," said Prathamesh Masdekar, Research Analyst at StoxBox.
"The US market is expected to continue to grow strongly due to the normalisation of base business prices, field force expansion, continuous acceleration of gRevlimid, and the introduction of new products (gSpiriva, gPrezista) despite pricing challenges, intense competition, and stricter regulatory compliance requirements," he added.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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