Pharmaceutical companies this quarter are expected to outperform their domestic markets with an estimate of up to 40-50 percent growth on a year-on-year (YoY) basis due to factors such as low base, as well as COVID-19, led sales.
Speaking in an interview with CNBC-TV18, Surajit Pal, pharma analyst at Prabhudas Lilladher said, “If you go by the historical one year forward, all the pharma companies are currently trading high and so are the market fundamentals and other companies and sectors, but the COVID situation will keep on giving opportunities in the spot market for active pharmaceutical ingredient (API) companies and it looks like the market will give short-term booster than what will happen in the long-term.”
On stocks, he said, “Lupin and Sun Pharmaceutical Industries are our top picks followed by Dr Reddys Laboratories (DRL) and Cipla.”
Also, watch the accompanying video of CNBC-TV18’s Ekta Batra for more details on what to expect from the pharma space in Q1 of FY22.