The pharmaceutical sector in India is showing signs of a turnaround after facing corrections in recent years. Many pharma stocks have increased over 40% since February 2016 and are reaching 52-week highs, presenting investment opportunities. The analyst recommends stocks like Jubilant, Syngene, Hikal, Neuland Lab, and RPG Life as potential multibaggers based on the sector's strong performance and individual companies' growth prospects.

1. Pharma Sector on a Turnaround, Shows Signs of Booming
In March 2009, the Pharma Index was trading at 2020. For the next 6 years until
March 2015, Pharma had a continued rally to make a high of 14,020. Thereafter in
March 2016, the
Pharma Index
witnessed highest
correction in 7 years
to make a low of
10,353. Currently it
stands at 11,100.
The Pharma Sector has
been all-time
performer. However,
the recent USFDA
inspections have
caused a few hiccups leading to correction. As most Pharma companies export in
bulk and Rupee is currently at its all-time low (Dollar appreciation against Rupee),
the Pharma sector has witnessed buying and profitability.
Rise in share price of major Pharma companies post Budget (since Feb
2016):
Stocks Current Share Price
(in Rs.)
Rise in share
price (%)
ASTEC 598.55 237.12
RPG LIFE 502 141.06
JUBILANT 711.9 133.26
BROOKS LAB 149.1 109.26
THEMIS MEDICARE 596.3 108.31
PIRAMAL PHYTOCARE 100 104.29
BIOCON 925.05 97.03
CAPLIN POINT 368 95.91
NEULAND LAB 1009 92.72
HESTER BIOSCIENCES 715.5 85.8
PIRAMAL ENTERPRISES 1673.7 84.31
HIKAL 225 80.14
SHILPA MEDICARE 664.9 67.29
DISHMAN 239.15 60.67

2. MERCK 998 52.77
AMRUTANJAN 559.4 47.91
SYNGENE 580.3 46.73
NATCO PHARMA 607.3 46
JB CHEMICALS 350.25 44.64
ORTIN LAB 21.75 43.09
AJANTA PHARMA 1862 43.01
LAL PATH LAB 1180 42.74
AARTI DRUGS 637.5 38.03
ALKEM LABORATORIES 1715 35.61
UNICHEM 266.9 34.73
LINCOLN PHARMA 197 34.52
GUFIC BIOSCIENCES 48 27.83
PANACEA BIOTEC 124.25 27.83
MARKSANS PHARMA 44 26.26
CADILA 396.4 26
SMS PHARMA 97 25.08
STRIDES SHASUN 1098 24.84
DIVIS LAB 1169.75 23.06
SPARC 316 22.41
FDC 216.35 20.13
GLENMARK 878.3 19.39
KOPRAN 50 18.91
BAL PHARMA 102.3 18.27
SUVEN 180.75 18.1
PARABOLIC DRUGS 7.35 17.6
VENUS REMEDIES 98 17.08
KILITCH DRUGS 38.5 16.31
AUROBINDO PHARMA 741.65 13.12
TORRENT PHARMA 1420.45 12.64
COUNTRY CONDOS 4.3 11.69
IND SWIFT 6 11.11
CIPLA 570 10.86
SYNCOM HEALTHCARE 6.7 10.74
BAFNA PHARMA 29.3 7.13
FORTIS 179 6.96
ALCHEMIST 22.4 6.67
IND SWIFT LAB 38.1 6.57
BLISS GVS 157.4 6.21
DR REDDYS 3206 5.59
JAGSONPAL PHARMA 34.8 5.14
ALEMBIC PHARMA 649.15 5.03
ALEMBIC 35.65 3.94
TTK HEALTHCARE 901.2 3.34
GRANULES 109.15 2.73

3. SANOFI INDIA 4391.2 1.7
WANBURY 39.55 1.41
IPCA 572.35 1.35
ABBOTT INDIA 4846.05 1.25
ARVIND REMEDIES 4.65 1.09
The Indian pharmaceutical sector has the potential to grow and increase to the
size of 300 billion dollars by the year 2030 from the current 15 billion dollars
provided it accords high priority on quality and R&D - research & development,
chief executives of top pharmaceutical companies stated.
They said that the Indian firms must foster innovation and develop products for
the benefit of the patients adding that companies must address quality compliance
challenges and inculcate quality culture in the organisations to develop high
quality medicines for all the markets.
Conclusion:
The Pharma Sector is showing a turnaround and many Pharma stocks are hitting
52 week highs. It was only today that Syngene share price touched 52 week high.
This is creating an opportunity for other Pharma stocks to do well since the entire
sector is performing well. It is an excellent time for Pharma stock lovers to invest.
Dynamic Levels Research Analysts have recommended the following multibagger
Pharma stocks which can be great for investment:
Jubilant
Syngene
Hikal
Neuland Lab
RPG Life
Piramal Enterprises
Lincoln Pharma

4. Disclaimer
The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the
research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment
decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022
Disclosure
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Advisory Services and Portfolio Management Services. Dynamic Commodities Pvt. Ltd., associate company, is a member of MCX &
NCDEX. We declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we
are registered. SEBI, Exchanges and Depositories have conducted the routine inspection and based on their observations have issued
advise letters or levied minor penalty on for certain operational deviations.
Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/ Research
Analyst/ his Relative:
Do not have any financial interest / any actual/beneficial ownership in the subject company.
Do not have any other material conflict of interest at the time of publication of the research report
Have not received any compensation from the subject company in the past twelve months
Have not managed or co-managed public offering of securities for the subject company.
Have not received any compensation for brokerage services or any products / services or any compensation or other benefits
from the subject company, nor engaged in market making activity for the subject company
Have not served as an officer, director or employee of the subject company
Article Written by
Salman Hashmi