Medicate your portfolio with Pharma stocks

Pharmaceutical industry is a knowledge intensive industry, and faces its own share of challenges. Though it was a tough year for the industry we observed many record approvals from regulators; push up in R & D activities; capacity expansion and enlargement in regulated & semi regulated markets on the global front to meet market demand. India is a leading and most favoured supplier of formulations to advanced markets such as US, Europe and semi regulated markets like Africa, LATAM (Latin America).

Rapid urbanisation, ageing population and the growing incidence of chronic diseases combined with increased healthcare spending across major geographies, contributes to the rapid growth of the market. Attributed to these factors many India based Pharma companies are being benefited.

We have analysed last one-month's performance of 32 Pharma companies. 19 companies have achieved positive returns in the previous month. We have tagged our top five performers by analysing last one-month's performance.

Our top five performer are- Ajanta Pharma (25%), Bliss GVS Pharma (22%), Dishman Pharmaceuticals & Chemicals (19%), JB Chemicals & Pharmaceuticals (17%) and Torrent Pharmaceuticals (17%). Ajanta Pharma, JB Chemicals & Pharmaceuticals and Torrent Pharmaceuticals have recently touched their 52 weeks’ high. Bliss GVS Pharma is riding on growth momentum. Since its 52 week low level of 79 per piece in June, 2016, it has gained 75 per cent till date. We can see correction in many other Pharma companies like Lupin, Marksans Pharma, Dr. Reddy's Laboratories, Glaxosmithkline Pharmaceuticals, etc. Once correction is over and fundamentals are stable, one can ride on the tide.