The Nifty Pharma Index outperformed the market benchmarks in 2023-24, with 58% returns against 29.5% and 38.5% by Nifty 50 and Nifty 500, respectively. Of the 89 listed pharma companies, 83 (or 94%) with market caps higher than Rs.500 crore, delivered positive returns in 2023-24. Between 31 March 2023 and 12 March 2024, 77 (or 86.5%) companies generated returns above 20%. The sample excludes healthcare stocks (hospitals/diagnostics) and the
Business NewsWealthInvestStocks to buy: Will pharma scrips keep rising? 3 stocks with potential upside of up to 30.6%
Stocks to buy: Will pharma scrips keep rising? 3 stocks with potential upside of up to 30.6%
Synopsis
In the December 2023 quarter, the pharma stock universe (89 stocks) reported 12% and 27% y-o-y growth in revenue and PAT, respectively. Comparatively, the aggregate revenue and PAT of Nifty 500 companies (excluding pharma) grew by 5.3% and 20%, respectively. The sector fundamentals are stable, but stretched valuations could hinder price performance.