Experts give 'buy' tag to these pharma company stocks
Due to rise in Covid-19 cases in India, one should focus on pharma stocks as they are expected to outperform other sectors in next one to three months
Due to Covid-19 spread, pharma sector is going to receive major traction in the market leading to higher performance reflecting in their balance sheet, say experts
Amid talks of third wave of Coronavirus in India, the domestic stock market is expected to remain volatile and experts are suggesting investors to continue stock specific trade, keeping special focus on the pharmaceutical sector stocks. They are of the opinion that due to the Covid-19 in India and other countries, pharma sector is going to receive major traction in the market leading to higher performance reflecting in their balance sheet. They suggested investors to look at Lupin, Cipla and Divi's Lab shares to buy today for one to three month time-frame.
Speaking on the shares to buy today Avinash Gorakshkar, Head of Research at Profitmart securities said, "Currently, the market looks unmoved by the rising Covid-19 cases in India but if you look at the FIIs trade practice in recent days, they are fishing out their money from the Indian markets. So, any negative news on the Covid-19 in India looks dangerous for the Indian indices and hence I would recommend investors to maintain stock specific trade keeping strict stop loss. In current market scenario when the fresh Covid-19 cases in India have gone above 4 lakh mark, one should focus on pharma stocks as they are expected to outperform other sectors in next one to three months."
Asked about the pharma stocks that one can look at, Gorakshkar said that Lupin, Cipla and Divi's Lab are some of the prominent shares that one can buy at current price keeping one to three month time-horizon. However, Gorakshkar said that these stocks can be kept in one's portfolio for long-term too.
Unveiling investment strategy in Lupin shares Ravi Singhal, Vice Chairman at GCL securities said, "Lupin has recently witnessed sharp upside move and is still expected to go northward. One can buy Lupin stocks at current price for the target of Rs 1240 and 1270 maintaining stop loss at ?1122 mark."
On Cipla and Divi's Lab shares Ravi Singhal of GCL Securities said that one can buy Cipla shares at current levels for the target of Rs 1044 maintaining stop loss at Rs 844. For those who are interested in taking position in Divi's Lab shares, Singhal advised buying at around Rs 4,000 for the target of Rs 4270 and Rs 4440 maintaining stop loss at Rs 3922.