Which will be next money making machines in Pharma Sector

I think Vidhi Khanna and Minakshi Razdan need to open their cards in Pharma sector on which pharma stocks they are bullish for long term.

 

Why go running here and there? LOOK AT JB CHEM. It is yup 9.62% today. AFTER Rs. 14 dividend. STILL UNDERVALUED!!

 

I have Lupin and Sun Pharma in my portfolio. But I want to invest more in Pharma sector.One option is to buy more of same Lupin and Sun Pharma .Second option is to add some other also. What is opinion of members .I want aprox 10% weightage of folio to Pharma sector and is presently under 10%.I am ready to to add one more stock.I am seeking some multibagger mid or small cap .I am a Quality stock conscious person.Which among Aarti drugs ,Suven,Granules ,Shilpa medicare ,Torrent pharma ,Alembic , Ajanta ,st acrolab,divi lab,cadila and JB chem can be biggest multibagger in long run.Pl help me to select one or maximum two of these.My long term is beyond 5 years .

 

@kharb - All the stocks you mentioned are good but since you already have grown ups like Lupin and Sun Pharma, adding a small/mid cap stock with growing base would add value. I would recommend Aarti drugs, Suven, Granules, Shilpa for one reason or other.

 

What about SMS Pharma?

 

Sun Pharma, Lupin and Ajanta Pharma. Lambi race ke counter.

 

+ Cadila

 

Dear kharb ,
my choice is you have already 2 big boys like Sun and Lupin ....this time go for midcap " JBCHEM" it is available in reasonable market price and business model is also good ...
ALL THE BEST

 

JB Chemicals is indeed a good stock with good management and reasonable valuations. Granules India, Indoco Remedies and Ajanta Pharma are also good mid-cap stocks to look at for a long-term portfolio.

 

No one talking about wockhardt....it will be bigger than sun pharma soon.....granuels and suven and lincoln all three great to buy.....

 

Well Said Sir....

 

Yes. JB Chem is a good stock. Excellent fundamentals and reasonable valuations. Ajanta Pharma is a bit expensive at present. Not sure about Indoco Remedies. Mr. Carl Icahn if you have any researh report on Indoco Remedies (latest) pl share.

 

Have a look at Strides Arcolab too. Its weird no one keeps it on their radar. Shasun Pharma merger is going to be a big boon for the company. I also like Nectar life sciences and Sharon bio from purely valuations perspective (although this is a much more risky bet).

 

Stides Arcolab, Shilpa and Suven.

 

I have been spending some time on this very question. I like Shilpa the best of the lot because they are in the Oncology space which has reasonably high barriers to entry ( translates to lower price erosion), have a strong R&D programme and have really strong financials. If I am not mistaken, close to around INR 500 reserves with total debt around INR 65 crores. They have also completed a strong investment cycle this year positioning themselves well for the next few years. The thing which is not clear to me is what % of raw materials in the production is imported.

 

I think sun pharma will have to be the stock of last resort if you cannot find anything in the small or mid-cap space. When there are so many attractive mid-csp stocks like JB Chemicals, Ajanta, Shipla etc, why go with a lumbering large cap stock?

 

Shilpa Medicare is one of favourites it has a very long growth path ahead.

 

It is useful to keep in mind that there is great value in proven track record. Also, just because a share is a " large cap" is not reason enough to bin it. As long as the profit pool it is addressing is large, it's earnings growth is climbing and it has market beating roce and roe, one should keep adding it

 

I agree. Though I must say that their revenue projections of 5 to 10 per cent is a bit of a damper to me, especially given it is trading at almost a 40 multiple. Any insights on this would be useful.