homemarket Newsstocks News

This is the only pharmaceutical stock that has given over 100% returns in 2019

This is the only pharmaceutical stock that has given over 100% returns in 2019

This is the only pharmaceutical stock that has given over 100% returns in 2019
Profile image

By Mousumi Paul  Dec 17, 2019 1:54:58 PM IST (Updated)

AstraZeneca Pharma India is a midcap pharmaceutical company that has outperformed all its peers from the largecap, midcap and smallcap pharma space.

The pharmaceutical sector had a tough beginning this year on the back of worsening US-China trade relations and economic slowdown. The second quarter saw an improvement in earnings in the sector, but weak trend continued. Despite all these negative factors in the sector, stock of AstraZeneca Pharma India, a midcap pharmaceutical company, has outperformed all its peers from the large-cap, midcap and smallcap pharma space. On a year-to-date (YTD) basis, the company's share has jumped 102 percent while Nifty Pharma index slipped 10 percent. In the last 10 years, the UK-based company's Indian arm has delivered nearly 500 percent returns.

Recommended Articles

View All

The company has put up robust numbers in every quarter. In Q2FY20, the company’s sales and net profit rose 29 percent and 58 percent, respectively, on year-on-year basis.
In terms of valuations, the stock sits at the rich valuation of 96.01x compared to industry average of 26.33x. As of March 2019, the company’s debt-to-equity ratio was 0, and free cash flow was at comfortable Rs 60.49 crore.
In fact, the company’s arm in China reported a sales of $3.7 billion in the first nine months of 2019, constituting 61 percent of its emerging market sales and 21 percent of total sales.
According to a CLSA report, the resurgence in multi-national pharma stocks is due to their increasing focus on key brands and the rising acceptance of patented products in India. Strong balance sheets, superior return ratios, and stable earnings profiles lend defensive characteristics to MNCs, it said.
"MNC stocks have outperformed local peers for the first time in over a decade and have also significantly outperformed the Nifty over the last 18 months,” the brokerage said in a recent report.
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!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers
    CurrencyCommodities
    CompanyPriceChng%Chng