has regained the market-capitalisation of Rs 1-trillion after a sharp rally in its stock price. At 01:20 pm, the company had the market-capitalisation of Rs 1.12-trillion, the BSE data shows.
The trading volumes on the counter have nearly doubled with a combined 30 million shares changing hands on the counter on the NSE and BSE so far.
Most analysts believe Indian pharma sector’s has been relatively resilient to the Covid-19 disruption, favorable currency tailwinds and stable outlook for India and US business.
“The pharmaceutical companies are doing their best by managing the key medicine supplies to the market as demand remain strong being under essential commodities segment. However, the lockdown scenario has cropped several unprecedented challenges. These challenges have led to lower capacity utilisation at most of the plant levels,” analysts at Centrum Broking said in sector update.
The brokerage firm remains confident on the strong demand scenario from both domestic and export markets.
Also, believe that these disruptions would not be meaningful from full year earnings perspective as the benefits of weaker currency could bridge the gap. It recommends ‘buy’ rating on the stock with price target of Rs 575 per share.
has invested significantly in building specialty pipeline and the costs are reflected in P&L. With most assets now commercialised, we expect margins to improve as the launches gain market share,” analysts at HDFC Securities said in sector update.
The brokerage firm believes the pharma sector is poised for 15 per cent earnings CAGR over the next two years. The earnings revision cycle is nearing bottom and there is limited scope for valuations to deteriorate, it said.