Pharma stocks continue to give good returns even as other sectors continue to feel the pinch amid the ongoing coronavirus crisis. While the stock prices of other businesses have taken a hit, stocks such as Aurobindo Pharma have given around 195 per cent return since the first case of coronavirus was reported in India. Sun Pharma, Dr Reddy's Laboratories, Cipla, Torrent Pharmaceuticals, Lupin and Cadila Healthcare have given over 50 per cent return since January 30 when the first coronavirus case was reported. Sensex is down nearly 12 per cent so far.
"Pharma has been relatively resilient vs other sectors, and while there will be some impact in the growth due to lesser patient footfalls, no MR movement to the doctor's, delay in hospital surgeries etc, most of the loss would recover in subsequent qtrs once the situation normalises. Also, given the essential nature of the business, the disruption in production/supply logistics have more or less smoothened out post the initial hiccups," says an analyst at Emkay Global Financial Services.
Here are 7 pharma stocks that gave over 50 per cent returns since COVID-19 outbreak
Sun Pharma
Sun Pharmaceutical Industries' stock has given 62.6 per cent return so far this year since January 30. The scrip of the firm with a market capitalisation of Rs 1,18,644.18 crore touched a 52-week high of Rs 512.55 on June 9. The stock hit a low of Rs 315.2 on March 23. Sun Pharma reported a 37.12 per cent decline in its consolidated net profit to Rs 399.84 crore for the quarter ended March 2020, mainly on account of one time exceptional loss.
Dr Reddy's Laboratories
The stock has given 59.7 per cent return since January 30. The share price of the company with market capitalisation of Rs 65,491.68 crore hit a 52-week high of Rs 4189.35 on June 10. The stock hit a low of Rs 2,623 on March 19. Dr Reddy's Laboratories reported a 75.92 per cent year-on-year (YoY) rise in consolidated net profit at Rs 764.2 crore for the March quarter.
Cipla
The company with Rs 51,641.66 crore valuation has given stock market investors a return of 95.1 per cent in the given period. The share price hit a 52-week high of Rs 696 on June 22. The stock hit a low of 356.75 on March 13. Cipla reported a 33.32 per cent year-on-year (YoY) drop in consolidated net profit at Rs 238.49 crore for the March quarter.
Aurobindo Pharma
The stock has given the maximum return of 194.7 per cent to the investors in this pack. The share price of Rs 47,466.89 crore worth company touched a 52-week high of Rs 828.45 on July 10. The stock hit a low of Rs 281.15 on March 23. Aurobindo Pharma reported a 45.07 per cent year-on-year (YoY) jump in consolidated net profit at Rs 848.99 crore for the March quarter.
Torrent Pharma
Torrent Pharmaceuticals' stock has given a return of 51.6 per cent. The stock of Rs 40,924.63 crore company hit a 52-week high of Rs 2679.45 on April 9. The stock hit a low of Rs 1,767 on March 19. Torrent Pharmaceuticals reported a consolidated net profit of Rs 314 crore for the quarter ended March 31, mainly on account of cost control and productivity improvements.
Lupin
The stock has given 89.3 per cent return since January 30. The share price of the company with market capitalisation of Rs 39,543.52 crore hit a 52-week high of Rs 955.85 on June 15. The stock hit a low of Rs 505 on March 13. Lupin reported a 34.55 per cent rise in its consolidated net profit to Rs 389.63 crore for the quarter ended March 2020.
Cadila Healthcare
Cadila Healthcare stock has given 62.4 per cent return so far this year since January 30. The scrip of the firm with a market capitalisation of Rs 36,245.60 crore touched a 52-week high of Rs 383.65 on June 15. The stock hit a low of Rs 236.3 on March 12. Cadila Healthcare reported a 14.82 per cent decline in consolidated net profit to Rs 391.90 crore for the quarter ended on March 31, 2020.
In the two COVID-19 vaccine candidates from India, ZyCov-D vaccine by Zydus Cadila recently received approval for human clinical trials from the Drug Controller General of India (DGCI). It has got the nod for Phase II, III trials.
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