5 Top Pharma Stocks To Invest in India – 2018

By | August 4, 2018

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+.



Performance
  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

 

5 Top Pharma Stocks To Invest in India - 2018 Sun Pharma

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.

Performance
  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

 

5 Top Pharma Stocks To Invest in India - 2018 Cipla

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.

Performance
  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

 

5 Top Pharma Stocks To Invest in India - 2018 - DrReddy's Lab

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.

Performance
 
  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

 

5 Top Pharma Stocks To Invest in India - 2018 - Granules India

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. 

Performance
  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

 

5 Top Pharma Stocks To Invest in India - 2018 - Jubilant Life Sciences

 

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

16 thoughts on “5 Top Pharma Stocks To Invest in India – 2018

    1. Ratan Kumar Post author

      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.

      Reply
    1. Ratan Kumar Post author

      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

      Reply
  1. Sudhir Bedmutha

    Pl suggest good 5 pharma stocks with duration

    Reply
    1. Ratan Kumar Post author

      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.

      Reply
  2. Krishna

    Hi, Any small cap stocks for investment in the Pharma sector for long term investment?

    Reply
  3. Jayaramn Ayakkad

    which Pharma stocks will gain due to weakening of Indian Rupee.

    Reply
    1. Ratan Kumar Post author

      Keep an eye on Infrastructure, Real estate, Banking, Agri Based businesses, and Consumption stocks may likely to outperform before 2019 election.

      Reply

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