Stock Watch: Healthcare index nears all-time high, Sun Pharma at new high
Shares of pharmaceutical companies are in limelight today with Sun Pharmaceuticals, Ipca Laboratories, Wockhardt and Aanjaneya Lifecare are trading at their respective lifetime highs on the Bombay Stock Exchange (BSE).
The BSE Healthcare index — which tracks the movement of pharma shares on the BSE —the largest gainer among the sectoral indices is up 70 points or 1% at 6,845, trading nears to its lifetime high of 6,871 touched on January 2011.
The index has outperforming by gaining 16.6% year-to-date, compared with 12.5% rise in the benchmark index Sensex.
Sun Pharma Industries is trading higher by 2% at Rs 607, extending its yesterday’s over 2% gain after a favourable verdict from the US Supreme Court in its patent case against Novo Nordisk.
According to Motilal Oswal Financial Services, pharma sector will post 28% year-on-year growth in earnings before interest, taxes, depreciation, and amortization (EBITDA) led by strong performance by Sun Pharma on the back of improvement in the profitability of Taro, Dr Reddy's Lab and Cadila led by acquisitions, Glenmark Pharma and Torrent Pharma on a low base.
The research firm expects the sector will post a topline growth of 13.5% on year-on-year basis (excluding one-offs) and adjusted profit after tax (PAT) is expected to grow by 12.5% on YoY.