Pharma stocks in India have been outperforming the benchmark index Nifty50 this year. Factors driving the gains include improved performance in the US generics market, robust performance in branded markets, lower raw material costs, and market share gains in new products.
“Sun, Cipla, Lupin being market leaders, should be able to do well. Most of these companies have actually added on the Street last year. While all those costs are in the P&L, we are expecting that this year, we will see their productivity improve.”
Pharma as a sector has been under pressure for a very long time. However, some of the small and mid sized Indian pharma companies which are not hit by pricing pressure of the US generic market and other issues which large pharma companies have been facing keep attracting interest from the analyst. The list is based on upside estimated by the analysts, with the highest potential stock coming on the top of the list.