Pharma stocks hold promise and should remain part of your existing portfolio
28-Feb-2011 •Research Desk
I hold shares in Dishman Pharma, Sun Pharma and Cipla. What are the prospects of the pharma industry this year? Should I hold on to these stocks?
– Ramesh Diwan
Over the past three years, the BSE Healthcare index has performed very well, posting a compounded annual return of 20.22 per cent over this period. The third quarter sales for the sector are also expected to be robust.
Among large-cap stocks, Sun Pharma is expected to do well once Taro’s operations are integrated with it. In Cipla, you hold a generics company that is also expected to fare well. In case of Sun Pharma, the valuations have factored in the global mergers and inventory rationalisation, making this stock promising. You can hold on to all your stocks in this segment if growth is what you seek.