Category: Personal Finance

Why should you invest in Pharma company now?

Despite the uncertainty, pharmaceutical companies may be appealing to long-term investors. Because of the growing scale of the industry and the fact that healthcare is becoming a more important part of people’s lives, investors will make good money if they invest at the right time. Furthermore, as an ever-evolving industry, many pharmaceutical firms profit from creativity, scientific breakthroughs, and technical advancements. The Indian pharmaceutical industry is expected to be worth 33.18 billion dollars by 2023, and it will rank ninth in the world.

The P/E ratio aids investors in determining a stock’s market value in relation to its earnings. In a nutshell, the P/E ratio shows how much the market is willing to pay for a stock today based on its past or projected earnings. A higher P/E ratio indicates that investors are willing to pay a higher share price today in anticipation of future growth.

Top Best Listed Pharma Company Stocks To Invest Now in 2021

Top Best Listed Pharma Company Stocks To Invest Now in 2021

Sun Pharmaceuticals

Stock Price: Rs 691

Market Cap: 1.66LCr

P/E ratio: 68.88

It is India’s largest pharmaceutical company and the world’s fourth-largest. It is India’s largest multinational pharmaceutical company. It first opened its doors in 1983. Mr. Dilip Shanghvi, who is also the MD of Sun Pharmaceuticals, founded the company. With the acquisition of Ranbaxy in 2014, Sun became India’s largest pharmaceutical company, the largest Indian pharmaceutical company in the United States, and the world’s fifth-largest specialty generics company. Ranbaxy Laboratories, Sun Petrochemical Pvt. Ltd, Sun Ophthalmic Inc, Alkaloida Chemical Company Zrt, and Chattem Chemicals Inc are some of the company’s subsidiaries. It sells low-cost medicines in more than 150 countries on six continents.

Divis Laboratories

Stock Price: Rs 4, 033

Market Cap: 1.07LCr

P/E ratio: 57.23

Divi’s Laboratories began as Divi’s Research Centre in 1990. Initially, the company focused on developing commercial processes for the production of APIs and intermediates. In 1994, Divi’s Research Centre renamed itself Divi’s Laboratories Limited to signal its intention to enter the API and intermediates manufacturing business. On February 17, 2003, the company went public with an initial public offering (IPO). The company opened a research centre in Hyderabad in 2010.

Divi’s was recently named one of the top three API manufacturers in the world, as well as one of the top API companies in Hyderabad. Divi’s is an Indian public limited company with a revenue of INR 5500 crores ($780 million) for the fiscal year 2018-19.

Dr. Reddy’s Lab

Stock Price: Rs 5,203

Market Cap: Rs 86.10TCr

P/E Ratio: 39.75

Anji Reddy founded the company in 1984. Dr. Reddy’s produces and sells a wide range of pharmaceuticals in India and around the world. Over 190 medications, 60 active pharmaceutical ingredients (APIs) for drug manufacturing, diagnostic kits, critical care, and biotechnology products are among the company’s offerings. It has a revenue of INR 144.36 billion and is India’s fifth-largest pharmaceutical company. Canagliflozin is one of the company’s most well-known products. Ramipril, Ibuprofen, Naproxen, Atorvastatin, Nizatidine, Naproxen Sodium, and other drugs are used to treat high blood pressure.

Cipla Ltd

Stock Price: Rs 904

Market Cap: 72.90TCr

P/E Ratio: 32.63

Cipla Limited, headquartered in Mumbai, India, is an Indian multinational pharmaceutical company. Cipla primarily develops medicines for the treatment of respiratory, cardiovascular, arthritis, diabetes, weight loss, and depression, as well as other medical conditions. Khwaja Abdul Hamied established ‘The Chemical, Industrial & Pharmaceutical Laboratories’ in Mumbai in 1935. On July 20, 1984, the company’s name was changed to ‘Cipla Limited.’ Cipla has a revenue of 3.5 billion dollars and employs over 22,036 people. Invagen Pharmaceuticals is one of Cipla’s subsidiaries. They are the world’s largest producer of antiretroviral medications.

Cadila Healthcare

Stock Price: Rs 617

Market Cap: 63.32TCr

P/E Ratio: 34.27

Cadila Healthcare Limited (Cadila) was established in 1952. It is a pharmaceutical company based in Ahmedabad, India. It is one of India’s largest pharmaceutical companies, with a revenue of INR 119.05 billion. Ramabhai Patel founded the company. The Modi family’s share of Cadila Pharmaceuticals Ltd. was transferred to a new company called Cadila Pharmaceuticals Ltd. in 1995, and Cadila Healthcare Ltd became the Patel family’s holding company. The Drugs Controller General of India (DCGI), Government of India, granted the company permission to conduct human trials of the developmental COVID-19 vaccine named ZyCoV-D in July 2020.

Cadila is one of several Indian pharmaceutical companies that have received Remdesivir licencing agreements from Gilead Sciences.

Lupin

Stock Price: Rs 1,176.45

Market Cap: 53.67TCr

P/E Ratio: 46.64

Lupin Limited, based in Mumbai, Maharashtra, India, is an Indian multinational pharmaceutical company. It is one of the world’s most profitable generic pharmaceutical companies. Paediatrics, cardiovascular, anti-infectives, diabetology, asthma, and anti-tuberculosis are among the company’s key focus areas. Desh Bandhu Gupta, a professor of chemistry at BITS-Pilani in Rajasthan, founded Lupin in 1968. Gupta moved to Mumbai in the 1960s to work on his business, for which he had borrowed Rs 5000 from his wife to start. The company’s drugs are available in 70 countries, including advanced markets like the United States, Europe, Japan, and Australia, as well as emerging markets like India, the Philippines, and South Africa, to name a few.

Torrent Pharmaceuticals

Stock Price: Rs 2,727

Market Cap: 46.17TCr

P/E Ratio: 37.17

The Torrent Group’s flagship company is Torrent Pharmaceuticals Ltd. Ahmedabad is a city in the Indian state of Gujarat. Torrent Pharmaceuticals Ltd was founded by U. N. Mehta and was originally known as Trinity Laboratories Ltd.

Piramal Enterprises Ltd.

Stock Price: Rs 1,627

Market Cap: 36.64TCr

P/E Ratio: 285.44

Piramal Group was taken over by Ajay Piramal in the early 1980s. Gujarat Glass Limited, a manufacturer of glass packaging for pharmaceuticals, was acquired by the group in 1984, followed by Ceylon Glass in 1999. Piramal Enterprises Limited, formerly Piramal Healthcare Ltd, is the Piramal Group’s largest company, with operations in the healthcare, life sciences, information management, and financial services sectors. Piramal Enterprises is a Bombay Stock Exchange and National Stock Exchange-listed company.

Abbott India

Stock Price: Rs 16,100

Market Cap: 34.21TCr

P/E Ratio: 52.70

Abbott Laboratories is a multinational medical device and health-care corporation based in Abbott Park, Illinois, United States. In 1888, Chicago physician Wallace Calvin Abbott founded the company to develop well-known drugs; today, it sells medical devices, diagnostics, branded generic medicines, and nutritional supplements. In 2013, it separated its research-based pharmaceuticals business into AbbVie.

Glenmark Pharma

Stock Price: Rs 612

Market Cap: 17.19TCr

P/E Ratio: 18.05

Glenmark Pharmaceuticals Limited was founded in 1977 by Gracias Saldanha as a generic drug and active pharmaceutical ingredient manufacturer and is headquartered in Mumbai, India. In India, the company went public in 1999 and used some of the proceeds to fund the construction of its first research facility.

Jindal Steel and Power

Broking firm Motilal Oswal has placed a “buy” on the shares of Jindal Steel and Power with an upside of 20% from the current levels. The broking firm has set a target of Rs 550 on the stock from the current market price of Rs 457.

According to Motilal Oswal , Jindal Steel and Power achieved its highest ever Steel EBITDA/PAT of INR48.8b/INR27.7b in 4QFY21, supported by a strong pricing environment. Consolidated net debt fell further by INR34.7b QoQ to INR224b, implying a net debt/EBITDA of 1.53 times.

The broking firms has noted that the company has announced an INR180b capex at Angul to expand its Steel capacity by 85% to 15.9mtpa by FY25, at a very competitive cost of USD390/t.

Jindal Steel and Power: Margins to stay strong

Supported by higher prices, Motilal Oswal expects Steel margin to be strong in the near term after exhaustion of Sarda iron ore inventory.

“The announced 85% expansion in Steel capacity to 15.9mtpa in phases by FY25, at a competitive cost of USD390/t, should be RoCE accretive and improves the growth outlook of the business. Our target price of INR550/share is based on 5x FY23E EV/EBITDA for the Steel business and announced deal valuation for the Power business. At the CMP, the stock trades at an attractive 4.2x FY23E EV/EBITDA for the Steel business,” the broking firm has said.

Hindalco: A 20% upside target

Hindalco is another stock that Motilal Oswal has set a 20% upside target. The brokerage has set an upside target of Rs 480 from the current market price of Rs 399.

The 4QFY21 result of Hindalco (HNDL)’s subsidiary Novelis highlights the inherent strength in the business as its margin continues to record new high every quarter. Adj. EBITDA grew 43% YoY to USD505m (7% above est.), driven by the highest ever margin of USD514/t (est. USD493/t). Novelis should see mix improvement in FY22 as share of auto volumes should increase on strong demand as well as capacity addition.

“We raise our consolidated FY22E/FY23E EBITDA by 17%/10%, factoring in improved margin for Novelis, and higher aluminum price assumption (+15%/5% to USD2,250/2,100 per ton for FY22/FY23). Reiterate buy,” Motilal Oswal has said.

Disclaimer

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The above article is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor.

There are now ways to own gold without the risks that come with it. The Government of India and the Reserve Bank of India offer Sovereign Gold Bonds as one such option. The RBI-issued Sovereign Gold Bonds, according to experts, are one of the best investment instruments in the cherished precious metal. You can buy gold in the form of a certificate here.

SGBs are government-issued securities that are thought to be safe. Their worth is measured in multiples of gold grams. SGBs have seen a significant increase in investors, as they are seen as a viable alternative to physical gold.

The Sovereign Gold Bond Scheme 2021-22 – Series I Details

The Sovereign Gold Bond Scheme 2021-22 – Series I will be open for subscription for the period from May 17, 2021, to May 21, 2021.

Subscription details

The bond’s nominal value, calculated using the simple average closing price for gold of 999 purity on the last three business days of the week preceding the subscription period, i.e. May 11, May 12, and May 14, 2021 (May 13, 2021 being a holiday), is Rs 4,777/- per gram.

SGB Discount

The Government of India, in consultation with the Reserve Bank of India, has decided to offer a discount of Rs 50 per gram below the nominal value to those investors who apply online and pay for their application using digital means.

The issue price of a Gold Bond for such investors will be Rs 4,727/- per gram of gold.

Who can issue SGB?

Banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognized stock exchanges, such as the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited, will sell the bonds.

SGB tenor

The bond will have an 8-year tenor, with an exit option after the fifth year that can be exercised on the next interest payment dates.

SGB minimum and maximum amount

The minimum amount of gold that can be invested is one gram. Individuals have a maximum subscription limit of 4 kg, HUFs have a maximum subscription limit of 4 kg, and trusts and similar entities have a maximum subscription limit of 20 kg per fiscal year (April-March).

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