homemarket Newsstocks NewsSun Pharma's market valuation makes it the top pharma pick for JM Financial
Sun Pharma's market valuation makes it the top pharma pick for JM Financial
VP-Healthcare and Pharma Lead at JM Financial, Cyndrella Carvalho’s perspective on the pharmaceutical industry highlights the potential for growth in companies such as Sun Pharma and Lupin, and the potential challenges for diagnostic companies and hospitals in the upcoming quarter. It's also worth noting that Medanta, has a good potential for growth according to her, which makes it a worth to pay attention to.
Pharma stocks have been on a high after the COVID-19 pandemic but there is a slowdown now being seen in the diagnostics business from the heady highs they had achieved. In an interview with CNBC-TV18, Cyndrella Carvalho, VP-Healthcare and Pharma Lead of JM Financial, shared her insights on the current state of the industry.
JM Financial is most positive on Sun Pharmaceuticals as it is well-positioned in terms of valuations compared to other companies such as Dr Reddy's Laboratories (DRL).
“Our top pick is definitely Sun Pharma and we like the stock and we continue to maintain a ‘buy’ rating on Sun Pharma and we also vouch for DRL at these valuations,” she said.
She also noted that Sun Pharma's domestic growth is expected to remain strong in the coming months.
“We look forward to the Indian market and we believe that it will add value to the Indian growth where Sun continues to grow double digit and strong in-line with the market. The growth for the domestic market for Sun will remain strong," she added.
Also Read | WHO warning: Don't use Marion Biotech cough syrups for children linked to 19 deaths in Uzbekistan
Another company that Carvalho highlighted was Lupin, which she believes will be aided by the launch of a generic version of Suprep. Additionally, she said that investors will be closely watching Lupin's launch of a generic version of Spiriva, which is anticipated to happen in the fiscal year 2024.
“This season would help Lupin in the US specifically because of certain six-month exclusivity that Suprep launch that they have done. All eyes are on Spiriva. We expect this to come in FY24,” she mentioned.
Also Read | Breast cancer treatment gets cheaper in India
Carvalho also shared that the third quarter is likely to be a seasonally weak period for diagnostic companies. However, she initiated coverage on Medanta with a ‘buy’ rating, citing the company's potential for growth.
“On the hospital side, we have recently initiated ‘buy’ on Medanta,” she said.
On the other hand, Carvalho mentioned that the third quarter tends to be weaker for hospitals due to seasonality factors.
The United States Food and Drug Administration (USFDA) has issued a warning letter to drug maker Sun Pharmaceuticals specifying violations of norms in its manufacturing facility at Halol in the Panchmahal district of Gujarat.
In its warning letter issued on December 15, 2022, USFDA noted that the company has failed to perform operations within specifically defined areas of adequate size, and failed to use equipment in the manufacturing process, packing, and holding of drug products that are appropriate.
For the entire interview, watch the accompanying video
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Election 2024: What rural Delhi wants
May 16, 2024 10:10 PM
Over 50 onion farmers detained in Nashik ahead of PM Modi's visit
May 16, 2024 11:14 AM
Why Google CEO is cautiously optimistic about the election year
May 16, 2024 9:51 AM
Mark Mobius reveals how markets will react if NDA wins 400+ Lok Sabha seats
May 15, 2024 8:09 PM