BSE Healthcare index hits new high; Sun Pharma, Laurus Labs gain up to 5%

The healthcare index hit a fresh record high of 20,991 in the intra-day trade
Shares of pharmaceutical companies were in a focus on Friday with the S&P BSE Healthcare index hitting a fresh record high on the back of a strong rally in Sun Pharmaceutical Industries and Laurus Labs which gained over 3 per cent on the BSE.

At 02:16 pm, the S&P BSE Healthcare index was up 0.82 per cent at 20,958 points, as compared to a 0.52-per cent rise in the S&P BSE Sensex. The healthcare index hit a fresh record high of 20,991 in the intra-day trade, surpassing its previous high of 20,689 touched on September 18, 2020.

Among individual stocks, Sun Pharmaceutical Industries hit a 52-week high of Rs 568.50, up nearly 4 per cent, surging 11 per cent in the past four trading days on the BSE. The stock surpassed its previous high of Rs 564.90, touched on August 28, 2020.

Most of the brokerages are bullish on Sun Pharma as the company's July-September quarter (Q2FY21) result addressed most of the key concerns around its operating performance. JM Financial Institutional Equities sees multiple drivers of a sustained earnings momentum including Sun's specialty portfolio now reverting to its normalized growth trajectory, uptick in prescriptions across Taro's key products in the US, and further consolidation of Sun's leadership position in the domestic market.

Laurus Labs, on the other hand, rallied 5 per cent to Rs 333.95 on the BSE in the intra-day deals. The stock was trading close its record high price of Rs 345 touched on October 30, 2020. In the past 10 trading days, it has surged 25 per cent as compared to a 3-per cent rise in the S&P BSE Sensex.

On November 25, Laurus Labs said it has signed a definitive agreement to acquire 72.55 per cent stake in Richcore Lifesciences Pvt Ltd (Richcore) from Eight Roads Ventures and VenturEast for a value of Rs. 246.7 crore. This acquisition marks Laurus Labs' entry into the broader biologics and biotechnology segments, providing the company access to its high growth areas, globally and in India.

"The acquisition is a step towards building a vertically integrated biotech segment and adds a new lever to growth. It particularly provides capabilities in high growth areas of Recombinant (Rh) Proteins, Enzymes and Biological Contract Development and Manufacturing Organization (CDMO)," Motilal Oswal Financial Services said in post event update. The brokerage firm maintains 'buy' rating on Laurus Labs with target price of Rs 410 per share.

Among the other individual stocks, Indoco Remedies, Vimta Labs, Sun Pharma Advanced Research Company, Lupin, Neuland Laboratories, Strides Pharma Science, Glenmark Pharmaceuticals and Cadila Healthcare were up in the range of 2 per cent to 5 per cent on the BSE.



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