Pharmaceutical stocks have been among the hardest hit spaces on Dalal Street in recent months. Nifty Pharma, whose 20 constituents include some of the nation's largest drugmakers including Sun Pharma, Cipla, Dr Reddy's and Divi's, has lost more than nine percent of its value in the past year, a period in which the The benchmark Nifty50 index is down nearly two percent.
Traders have mixed views on pharmaceutical stocks at the current juncture.
According to Anand Rathi, there was a rebound in demand in the acute therapy segment in the pharmaceutical sector in December 2022. Despite the high bases, the price increases should help decent growth for companies operating in acute therapies. and the volume growth momentum should continue into chronic therapy. segment, the brokerage said in a research report.
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Anand Rathi is positive on chronic therapy-focused companies like Abbott, Ajanta Cipla, JB Chemicals, Eris and Torrent Pharma.
cipla
Jefferies downgraded Cipla to 'hold' from 'buy' and lowered its target by Rs 219 to Rs 1,100 apiece, implying two per cent upside potential from Tuesday's closing price.
HSBC maintained a 'buy' on the shares and raised its price target by Rs 10 to Rs 1,350.
solar pharmaceutical
Jefferies held a "buy" option on Sun Pharmaceutical Industries and raised its price target by Rs 16 to Rs 1,200 each.
HSBC also retained a 'buy' on the shares. The brokerage raised its target by Rs 20 to Rs 1,210 each.
Sun Pharma said Wednesday that one of its wholly owned subsidiaries has launched a new cancer drug, Palbociclib, in India for patients with advanced breast cancer.
Divi Labs
Jefferies continued to 'underperform' on Divi's Labs, but raised its target to Rs 3,045 from Rs 3,017.
HSBC kept a 'hold' on the shares and raised its target to Rs 3,440 from Rs 3,425.
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Biocon
Jefferies downgraded Biocon to 'hold' from 'buy' and lowered its target to Rs 285 from Rs 357. However, the brokerage's price target implies 10.5 percent upside potential from its closing price on Tuesday.
HSBC kept 'hold' on Biocon and lowered its target to Rs 300 from Rs 325.
Lupine
Jefferies maintained an "underperform" rating on Lupine and raised its price target for the shares by Re 1 to Rs 650.
HSBC, on the other hand, upgraded Lupine to 'buy' from 'hold' and raised its target for the shares to Rs 860 from Rs 715.
Laurus Laboratories
Jefferies downgraded Laurus to 'hold' from 'buy' and lowered its target to Rs 395 from Rs 567.
alchemy laboratories
Jefferies maintained an "underperformance" on Alkem and lowered his target for the shares to Rs 2,600 from Rs 2,802.
HSBC continued with its 'buy' rating on Alkem, but lowered its target to Rs 3,555 from Rs 3,735.
torrent pharma
Jefferies kept 'hold' on Torrent Pharma and raised his target for the shares to Rs 1,620 from Rs 1,505.
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