Year- end sale in Pharma stocks

The way Pharma stocks are taking a beating in recent months, it seems to only indicate that there is some sort of year end stock clearance sale going on in the Healthcare stocks. On a year to date basis, Nifty Pharma index has corrected by more than 12 per cent owing to various reasons.

Broader market Pharma stocks have seen a steep fall in their prices which has made some of the companies a compelling buy at this point of time. Though for many companies there remains a concern, which needs to be carefully looked after.

There has been a spurt of USFDA related issues for large-cap and mid-cap pharmaceutical companies in the past quarter or so. However, there are also cases of timely resolution and remediation of facilities of pharma majors.

There have also been wide concerns related to US justice department's drug pricing probe which has been an overhang since quite some time now, along with all the rhetoric which was seen before the run up to the US Presidential elections.

Most of the events and concerns seem to have affected the stock prices, and valuations at this point seem to be quite cheap given the pharma landscape in the country and abroad.

Stocks to watch out: -

Aurobindo Pharma- CMP- Rs 669
Sun Pharma- CMP- Rs 637.90
Lupin Laboratories- CMP- Rs 1464.05
Cadila Healthcare- CMP- Rs 377
Glenmark Pharma- CMP- Rs 904.35