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 2019.
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 – 2019
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. 1,09,145 Crore. Its P/E ratio is just over 44.
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 385.
It has 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. | 5.41 | 7.88 | -24.71 | -21.45 | -16.74 | -5.20 | 15.01 |
| NIFTY 50 | 0.26 | 0.79 | 2.89 | 1.77 | 13.53 | 11.49 | 14.42 |
| NIFTY Pharma | 2.09 | 3.76 | -7.96 | -5.92 | -7.00 | 2.98 | 14.80 |
Cipla
Cipla is the third largest pharma company and one of the top pharma stocks with a market cap of over 41K Crore and its P/E ratio is just over 29.
It has 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 | -1.54 | -1.96 | -20.05 | -14.95 | -5.64 | 4.39 | 10.81 |
| NIFTY 50 | 0.26 | 0.79 | 2.89 | 1.77 | 13.53 | 11.49 | 14.42 |
| NIFTY Pharma | 2.09 | 3.76 | -7.96 | -5.92 | -7.00 | 2.98 | 14.80 |
DrReddy’s Laboratories
DrReddy’s is yet another pharma company having a market cap of above 43K Crore and its P/E ratio is over 27. 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 | 0.02 | 0.97 | 1.68 | 6.01 | -3.75 | -0.21 | 19.31 |
| NIFTY 50 | 0.26 | 0.79 | 2.89 | 1.77 | 13.53 | 11.49 | 14.42 |
| NIFTY Pharma | 2.09 | 3.76 | -7.96 | -5.92 | -7.00 | 2.98 | 14.80 |
Granules India
Granules India is one of the small-cap stocks having a market cap of over 2200 Crore and P/E ratio is over 13. 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 89 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 70 on a closing basis and hold the stocks without panic.
| YTD | 1-Month | 3-Month | 1-Year | 3-Year | 5-Year | 10-Year | |
|---|---|---|---|---|---|---|---|
| Granules India | 1.73 | 4.05 | -6.46 | -34.67 | -5.85 | 36.07 | 37.74 |
| NIFTY Smallcap 100 | 0.10 | 2.77 | 3.56 | -30.91 | 8.82 | 13.86 | 15.10 |
| NIFTY Pharma | 2.09 | 3.76 | -7.96 | -5.92 | -7.00 | 2.98 | 14.80 |
Jubilant Life Sciences
Around 11K Crore of market cap and P/E ratio 14, 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 708 and it may hit 750 soon. So, put a Stop Loss at 560 and remain invested.
| YTD | 1-Month | 3-Month | 1-Year | 3-Year | 5-Year | 10-Year | |
|---|---|---|---|---|---|---|---|
| Jubilant Life Sciences | 0.13 | -3.32 | 2.65 | -12.25 | 27.88 | 40.50 | 17.63 |
| NIFTY Midcap 100 | -1.06 | 0.54 | 3.04 | -16.96 | 12.30 | 17.73 | 17.55 |
| NIFTY Pharma | 2.09 | 3.76 | -7.96 | -5.92 | -7.00 | 2.98 | 14.80 |
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.
Sir, i want to buy good stocks .can you suggest me top 10 stocks in all the sectors which i can invest .i am new to this share market
I keep rolling my dice to get a new opportunity to invest in stocks. As soon as I list out good stocks I will share with you. For the time being, keep visiting to akme
Please tell me necterlife future
I purchase 500 quantity rs 25.25
You have bought the stock in a downtrend so put a Stop Loss at 11.00 and hold it. The stock is in a downtrend since 2015. Fundamentally it also not looks impressive. I suggest you exit from this counter and invest in other stock.
sir i have hudco share,buyed at 76,now it has gone down.can i average at current levels.and please let me know about the stock. thank you so much sir.
Go ahead and average Hudco at the current level. Nothing wrong with the stocks and it is falling because broader markets are falling.
Hello!
I have Granules 1000 shares at an average of 110 ( bought in last 2 months). Please advise
Hold it
Dear Ratan,
Can i buy Granules india at RS.97 Levels? How much time should i hold?
You can buy the stocks at the current level. However, you need to come out from it, if it goes below 84-85. It has strong resistance at 99.80 and if it manages to cross and consolidates this level, then it may hit 112-115.
i want to invest 50000 Rs. only in share market…can you suggest me…which share is best for me for long time…I think atleast for 3 year….
You can invest in Nifty index stocks. Apart from that, you can also invest in large cap and small cap stocks that are likely to perform in the future.
Dear Sir, Please give your opinion on NALCO (National Aluminium Company) from dividend yield as well well return perspective.
Hey Prakash,
Nalco has a good dividend track record and has consistently declared dividends for the last 5 years or so. At the moment Nalco’s dividend yield is around 10.50%.
For the time being Nalco looks weak on the chart. It may test its near-term low. If it breaks this level, then you can see it around 25 levels.
You can enter around 25 as it has strong support near 25. On the upside, Nalco may go to 70-75 levels