The Nifty Pharma index was up over 2% on Wednesday as several pharma stocks including Divi’s Laboratories, Laurus Labs, Dr Reddy’s Laboratories, Cipla, Biocon, and Lupin were soaring.
What Happened: The pharma stocks shot up as sentiments around Q4 earnings and growth seem to have improved. Systematix Institutional Equities in its latest research note on the sector said that it expects companies within its coverage to “deliver high-single to low-double-digit YoY growth in the Indian
market.” The brokerage has a ‘buy’ call on six of the nine pharma stocks under its coverage.
The brokerage firm has a ‘buy’ call on Sun Pharma, Cipla, Dr Reddy’s, Indoco Remedies, Ajanta Pharma, and Zydus Lifesciences. On the three remaining stocks — Divi’s Labs, Lupin, and Poly Medicure — the brokerage firm has a ‘hold’ rating.
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The surge in the sector on Wednesday was led by Divi’s Laboratories, Laurus Labs. Divi’s Labs’ share price has surged over 9% today to hit an intraday high of ₹3,218.90. Laurus Labs’ share price, seeing a similar surge, soared over 8.5% to hit an intraday high of ₹328.90.
Sharing their view on Divi’s Labs, analysts at Systematix Institutional Equities said they expect the worst to be behind for the pharma major, and it should see single-digit revenue growth and margin expansion.
Price Action: Here is how pharma stocks fared in the late hours of trading on Wednesday.
Cipla shares were up 1.28% to trade at ₹918.80.
Sun Pharma shares were up 0.59% to trade at ₹1,014.80.
Pfizer shares were up 2.64% to trade at ₹3,730.80
Divi’s Labs share price were up 9.52% to trade at ₹3,206.
Laurus Labs share price was up 6.69% to trade at ₹322.75.
Shares of Dr Reddy’s Labs were trading 2.54% higher at ₹4,885.05.
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