3 Pharma Stocks Making a ‘Comeback’!
As the majority of the traction is being gained by the auto and banking sectors in the last few weeks, some sectors are definitely going unnoticed and one of them is the pharma space. Many pharma stocks have taken a decent hit in the last one year and some of them almost wiped out their entire post-Covid gains.
However, the sector is now staging a good comeback with the index surging 1.75% to 13,442, which is the highest level since 4 May 2022. This buying in the pharma space clearly reflects that investors are now giving a closer look at their favorite shares in this sector. In that vein, here are 3 stocks from this space that are looking extremely good on the charts.
Glenmark Pharmaceuticals Limited
Glenmark Pharmaceuticals Ltd (NS:) is a INR 11,415 crores big global pharma company that is engaged in the development of new chemical entities (NCEs) and new biological entities (NBEs). The stock trades at a P/E ratio of 12.12, compared to the sector’s average of 36.23, partly thanks to a 21.34% fall in the last one year.
Image Description: Daily chart of Glenmark Pharmaceuticals
Image Source: Investing.com
The company holds a 1.28% weightage in the Nifty Pharma index and today delivered a resistance breakout on the daily chart, above INR 410 and surged to the highest level since May 2022. As the trend has turned positive, the stock could travel to the next hurdle of INR 440 in the coming weeks.
Divi’s Laboratories Limited
The next one on the list is Divi’s Laboratories Ltd. (NS:) which has a market capitalization of INR 95,804 crores and trades at a P/E ratio of 32.36, making it almost fairly valued. The company manufactures and sells active pharmaceutical ingredients (APIs) and Intermediates. Its products include Generic APIs, Intermediates, Peptide Building Blocks and Carotenoids.
Image Description: Daily chart of Divi’s Laboratories
Image Source: Investing.com
The share price of Divi’s Laboratories surged over 5.5% to INR 3,805 and breached its falling trendline resistance on the daily chart. In the near term, the stock has the potential to touch the resistance of around INR 3,950.
Sanofi India Limited
Sanofi India Ltd (NS:) is a small-cap pharma company with a market capitalization of INR 12,926 crores and holds a weightage of around 1.18% in the Nifty Pharma index. The stock is trading at a P/E ratio of 13.69 and has a dividend yield of a lucrative 8.73%.
Image Description: Daily chart of Sanofi India with RSI at the bottom
Image Source: Investing.com
Sanofi India has a different chart structure as compared to the other two mentioned above. While those stocks are delivering a breakout, Sanofi India is a contrary bet as it became highly oversold, with the RSI depicting a bullish divergence on the daily chart, making it a good candidate for mean reversion. Currently, the stock is trading at INR 5,630 and might give a counter-trend rally till INR 6,000.
As the majority of the traction is being gained by the auto and banking sectors in the last few weeks, some sectors are definitely going unnoticed and one of them is the pharma space. Many pharma stocks have taken a decent hit in the last one year and some of them almost wiped out their entire post-Covid gains.
However, the sector is now staging a good comeback with the index surging 1.75% to 13,442, which is the highest level since 4 May 2022. This buying in the pharma space clearly reflects that investors are now giving a closer look at their favorite shares in this sector. In that vein, here are 3 stocks from this space that are looking extremely good on the charts.
Glenmark Pharmaceuticals Limited
Glenmark Pharmaceuticals Ltd (NS:) is a INR 11,415 crores big global pharma company that is engaged in the development of new chemical entities (NCEs) and new biological entities (NBEs). The stock trades at a P/E ratio of 12.12, compared to the sector’s average of 36.23, partly thanks to a 21.34% fall in the last one year.
Image Description: Daily chart of Glenmark Pharmaceuticals
Image Source: Investing.com
The company holds a 1.28% weightage in the Nifty Pharma index and today delivered a resistance breakout on the daily chart, above INR 410 and surged to the highest level since May 2022. As the trend has turned positive, the stock could travel to the next hurdle of INR 440 in the coming weeks.
Divi’s Laboratories Limited
The next one on the list is Divi’s Laboratories Ltd. (NS:) which has a market capitalization of INR 95,804 crores and trades at a P/E ratio of 32.36, making it almost fairly valued. The company manufactures and sells active pharmaceutical ingredients (APIs) and Intermediates. Its products include Generic APIs, Intermediates, Peptide Building Blocks and Carotenoids.
Image Description: Daily chart of Divi’s Laboratories
Image Source: Investing.com
The share price of Divi’s Laboratories surged over 5.5% to INR 3,805 and breached its falling trendline resistance on the daily chart. In the near term, the stock has the potential to touch the resistance of around INR 3,950.
Sanofi India Limited
Sanofi India Ltd (NS:) is a small-cap pharma company with a market capitalization of INR 12,926 crores and holds a weightage of around 1.18% in the Nifty Pharma index. The stock is trading at a P/E ratio of 13.69 and has a dividend yield of a lucrative 8.73%.
Image Description: Daily chart of Sanofi India with RSI at the bottom
Image Source: Investing.com
Sanofi India has a different chart structure as compared to the other two mentioned above. While those stocks are delivering a breakout, Sanofi India is a contrary bet as it became highly oversold, with the RSI depicting a bullish divergence on the daily chart, making it a good candidate for mean reversion. Currently, the stock is trading at INR 5,630 and might give a counter-trend rally till INR 6,000.