Pharma Sector 2020: The sector that has contributed most to the market rally this year is the Health Care sector.
Pharma Sector 2020: The year 2020 has been very volatile for the stock market due to Corona virus epidemic. But amid this ups and downs, the market has broken all its records. With the low of March, the Sensex has strengthened by 80 percent and crossed the figure of 46 thousand for the first time. Currently, the sector that has contributed the most in the market rally this year is the health care sector. The health care sector has given more than 57 per cent returns this year. Pharma stocks have gained up to 437 percent this year. The IT sector has been at number two, which has given around 48 per cent returns this year. While the BSE Sensex has gained 12 percent this year. The question arises that the boom which has been in the healthcare sector this year, will it continue next year as well.
Healthcare Outlook in 2021
Bhavesh Gandhi, lead analyst at Yes Securities, believes that we expect the favorable conditions for drugs due to COVID 19 to be lower in the first half of 2021. Pre-stocking of medicines will be less. But this round will focus on vaccine manufacturing and its distribution. Especially if 30-40 percent of the population has to be vaccinated. In such a situation, companies like Dr. Reddy’s, Aurobindo Pharma, Cadila and Wockardt are expected to get more benefits. At the same time, the serum may be the largest beneficiary in unlisted space.
While we must keep in mind that the opportunity related to the vaccine will be one time, in such a situation, when we have to choose stocks for a long period in 2021, we cannot see it as a weightage. They say that instead of companies growing rapidly in the domestic market, Torrent Pharma and Aurobindo Pharma and Alembic Pharma will be the top picks to take advantage of the US generic market.
Great performance in 2020
Pharma shares have performed extremely well in 2020. Jagadish Thakkar, director of Fortune Fiscal, says that the pharma sector has been an underperformer for the first 3 years of outperforming this year. But the COVID 19 epidemic has made people more aware of the disease. In such a situation, the demand for medicines was very high this year. The business of this industry continued to grow due to exemption from lockdown. He says that there are still many companies focusing on RavenUs in the domestic and foreign markets, in which there is growth. Due to the rapid growth in the past, there have also been reasons for their cheap prices. Prior to March this year, many pharma stocks had gone to their lows.
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Pharma shares gave returns till 2020
Aarti Drugs: 437%
Laurus Lab: 358%
IOL Chemical & Pharma: 335%
Suwen Life Science: 323%
Markson Pharma: 261%
Granules India: 211%
Solara Active Pharma: 184%
JB Chemical & Pharma: 152%
Stride Pharma: 118%
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In frontline shares
Device Lab: 97%
Ipca Lab: 96%
Aurobindo Pharma: 91%
Alembic Pharma: 89%
Cadila Healthcare: 84%
Dr. Reddy’s: 75%
Ajanta Pharma: 74%
Cipla: 64%
Biocon: 55%
Torrent Pharma: 49%
Glenmark: 49%
Sun Pharma: 33%
Lupine: 24%
Source: www.financialexpress.com