Nifty, Sensex and other Indices in Indian equity markets are at a lifetime high. So, are you scared to invest at the current level? If it is so, then don’t worry as I have screened out 5 top pharma stocks that you can invest in 2018.
Read Also: 5 Stocks That May Grow To Large Cap Stocks In India
You can invest in pharma stocks that are still underperforming and these stocks are likely to outperform in the near-term. Although, markets have run up a lot and you may be worried about the valuation of stocks. So, I take a contra call on pharma sectors and believe that it will perform.
5 Top Pharma Stocks To Invest in India – 2018
I filter out and found 5 of the best pharma stocks that you can invest from today itself and you don’t need to wait for 2018. Here is the list and remember these stocks are for long-term bets and not for trading purposes.
Read Also: Top 10 High Dividend Paying Stocks In India To Invest
Sun Pharma
Sun Pharma is one of the leading pharmaceutical company and market leader having a market cap of Rs. 1,27,400 Crore. Its P/E ratio is just over 33 and recently paid 350% dividend too. It has been the underperformer since last few years and also shows recovery in its financial statement.
Technically, Sun Pharma has started to move up and in a very short term, it may hit 600 levels. You can invest at the current level for a target of 950+ and keep a Stop Loss at 470.
It has a strong resistance at 750 level and if you are a short-term investor, then book profit at this level. However, if it corrects then try to re-invest in it for the ultimate target of 950+.
| YTD | 1-Month | 3-Month | 1-Year | 3-Year | 5-Year | 10-Year | |
|---|---|---|---|---|---|---|---|
| Sun Pharmaceutical Inds. | -17.72 | 2.71 | -1.13 | -20.25 | -14.99 | 7.59 | 16.35 |
| S&P BSE Sensex | 25.68 | 2.14 | 3.69 | 26.18 | 6.99 | 11.60 | 5.26 |
| S&P BSE Healthcare | -4.70 | 3.60 | 1.98 | -7.73 | -1.94 | 11.94 | 12.52 |
Cipla
Cipla is the third largest pharma company and one of the top pharma stocks with a market cap of over 47K Crore and its P/E ratio is just over 40.
It has a strong resistance at 650 level and so you can book partial profit at around 650. However, I suggest you remain invested for a target of 750 while putting Stop Loss at 480 level.
| YTD | 1-Month | 3-Month | 1-Year | 3-Year | 5-Year | 10-Year | |
|---|---|---|---|---|---|---|---|
| Cipla | 1.34 | -2.90 | 2.68 | 2.36 | -3.02 | 7.41 | 10.65 |
| S&P BSE Sensex | 25.68 | 2.14 | 3.69 | 26.18 | 6.99 | 11.60 | 5.26 |
| S&P BSE Healthcare | -4.70 | 3.60 | 1.98 | -7.73 | -1.94 | 11.94 | 12.52 |
DrReddy’s Laboratories
DrReddy’s is yet another pharma company having a market cap of above 39K Crore and its P/E ratio is 33. You can invest in DrReddy for a target of 4000+ and keep a Stop Loss at 1900.
If you are a short-term trader, then you can buy for a target of 2800. Once it manages to hold above 2800, then you can expect it to hit 3250 levels.
| YTD | 1-Month | 3-Month | 1-Year | 3-Year | 5-Year | 10-Year | |
|---|---|---|---|---|---|---|---|
| Dr. Reddy’s Lab | -22.51 | 2.66 | 7.25 | -23.68 | -10.92 | 5.31 | 12.58 |
| S&P BSE Sensex | 25.68 | 2.14 | 3.69 | 26.18 | 6.99 | 11.60 | 5.26 |
| S&P BSE Healthcare | -4.70 | 3.60 | 1.98 | -7.73 | -1.94 | 11.94 | 12.52 |
Granules India
Granules India is one of the small-cap stocks having a market cap of over 3300 Crore and P/E ratio is 20. Many veteran investors are investing in it as people believed it has the potential to become a multibagger stocks.
Currently, Granules India’s stock price is trading at 127 and its very short-term target is at 150. It has a strong and multiple resistance levels at 150 and is likely to break out in the upside.
If it goes beyond 150 and consolidates above this level, then it will skyrocket within a very short time. Just put a Stop Loss at 95 and hold the stocks without panic.
| YTD | 1-Month | 3-Month | 1-Year | 3-Year | 5-Year | 10-Year | |
|---|---|---|---|---|---|---|---|
| Granules India | 22.23 | 4.06 | 7.15 | 17.34 | 21.21 | 49.92 | 29.84 |
| S&P BSE Small Cap | 51.52 | 3.45 | 10.94 | 47.83 | 17.53 | 19.77 | 4.57 |
| S&P BSE Healthcare | -4.12 | 1.89 | 7.54 | -9.11 | -1.82 | 11.92 | 13.26 |
Jubilant Life Sciences
Around 11K Crore of market cap and P/E ratio 20, Jubilant Life Sciences has the potential to become a large-cap stock. It has consistently performed and it may continue its northward journey breaking its lifetime high too.
Currently, its stock price is 680 and it may hit 750 soon. So, put a Stop Loss at 560 and remain invested until the end of 2018.
| YTD | 1-Month | 3-Month | 1-Year | 3-Year | 5-Year | 10-Year | |
|---|---|---|---|---|---|---|---|
| Jubilant Life Sciences | 7.73 | 11.80 | -4.36 | 6.04 | 74.79 | 25.04 | 7.29 |
| S&P BSE Mid Cap | 41.09 | 3.96 | 6.27 | 38.67 | 19.02 | 19.36 | 6.00 |
| S&P BSE Healthcare | -4.70 | 3.60 | 1.98 | -7.73 | -1.94 | 11.94 | 12.52 |
I hope you like the 5 top pharma stocks that may outperform in 2018. If you like this post, then do share it on social networks like Facebook, Twitter, and Google+ or any other networks. You can also express your views and suggestion in the comments section.
Published on: Jan 20, 2018
What about cadila and Aurobindo pharma outlook in near term
Both Cadila and Aurobindo Pharma looks negative and may go down further. However, pharma stocks are underperforming and likely to give you return if you hold the shares for at least 1 year. You can do bottom fishing at current level also but trend for these stocks is bearish for the time being.
What about Wockhardt pharma ? Is it a good bet for short term ?
Technically it has strong support level at 540 and I suggest you add position near the support level.
What about Lupin Labs ? is it a good investment idea ?
Go ahead.I already have lupin in my portfolio.
LUPIN IS not listed in BSE. How about NATCO PHARMA
You can buy Lupin in NSE also. You can buy Natco Pharma only above 840 for a short-term target 1050 and keep SL at 740
Pl suggest good 5 pharma stocks with duration
Hey Sudhir, I already mentioned my top personal pick in pharma segment. I am in search of some other stock as well. As soon as I found some hot stocks, will share with everyone as a blog post. Keep visiting.
If you are a day trader, then checked out the BuzzingStock IntraDay Trading Screener. It lets you to scan stocks for day trading strategies as it gets updated in real time basis.
Hi, Any small cap stocks for investment in the Pharma sector for long term investment?
You can invest in Granules India.
which Pharma stocks will gain due to weakening of Indian Rupee.
You can invest in Lupin, Piramal Enterprise, and Cipla
which secror can rise as Lok sabha vote 2019 is coming Ratan ji
Keep an eye on Infrastructure, Real estate, Banking, Agri Based businesses, and Consumption stocks may likely to outperform before 2019 election.