[Trending] Top 4 Pharma Stocks in 2020 - Fundamental Analysis of Pharma Sector Stocks | Groww

Nifty has gone down almost 30% from its peak level. At this time, the pharma sector has outperformed the Nifty index. The returns it has given are +31%, in the past month, and +18% in the past 3 months. In this video, we talk about 4 stocks that are acting defensively when the market is going down. We talk about the business models, their products, and the returns they have given in the recent days.

When the Nifty has been 30% down from its peak level, one industry has outperformed the index has given positive returns.

That industry is the Pharma industry. There are 4 companies in this industry that have given positive returns.

The first company is the 5th biggest pharmaceutical company in the world and the biggest pharmaceutical company in India.
The name os the company is Sun pharma. This company was founded in 1983. It makes generic products. In 2014, it made a famous acquisition of Ranbaxy. 70% of its total sales are out of India. Their revenue in the recent financial year is 30,000 crores. The P/E ratio of the is 28.37. The industry P/E is 24. The operating profit margin is 20%. The operating cash flow is positive.

The second company has a market cap of 40,000 crores. The name of the company is Cipla. It has a very diversified portfolio, into generic drugs, branded drugs, APIs and devices used in the pharma sector. The P/E ratio is around 28. More than 75% of their revenue comes fom out of India, 41% comes from India, 22% from North America. In the past month, it gave more than 50% returns to its investors. The operating profit margin in December was 17% and its operating cash flow is positive.

The third company is Dr Reddy's lab ltd. In the past month it gave more than 40% returns. The overall market cap of the company is more than 65,000 crores. The P/E ratio is more than 35. The major revenue comes from generic industries. Their revenue in December was 4397 crores and in the last quarter was 3865 crores. In this quarter it booked losses. They have maintained their operating profit margin from 17 to 20. Their operating cash flow has been positive.

The last company is Aurobindo Pharma. It gave a return of 120%. Its P/E ratio is 14, which is very low compared to the industry's P/E ratio. The market cap of the company is 37,000 crores. Their revenue in this quarter was 5,000 crores. The operating profit margin is more than 20%. Their operating profit margin is positive.


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