Feb 24 2024, 08:25
7 MNC pharma stocks with upside potential of up to 14%:
Novartis is the third MNC pharma company which has announced sale of a part of its business in India. Some of these restructuring are being done as part of the global readjustment being made at the parent companies level. The bigger question is whether after this restructuring will the MNC pharma stocks, which have been underperforming for quite some time, be able to make a comeback on the street or not. This answer to this question would depend on multiple factors.
While they still trade at premium valuations, the fact is an age-old theory that just having a MNC stock in your portfolio is an assurance of growth and return no longer holds true. There was a time when having MNC stock, irrespective of the sector it was from, was a must have in one's portfolio. The reason: liberal at giving bonuses, dividend payments were good and given the fact some of them actually owned the best of the brands which had seen a secular growth due to which they were also able to deliver decent returns to shareholders. But after the IT bull of 2000, as a new set of Indian companies took the centerstage, a number of MNCs stocks lost their shine at least on the street.
In the case of pharma, the MNC pharma companies, whose parent companies were setting up 100 percent owned subsidiaries in India and started routing their business through them, they all lost their shine on the market and have still not got it back. Another reason for the MNC pharma stocks losing their shine was the fact that a lot of Indian companies did extremely well when it came to generic drug exports and also increased their presence in domestic markets. As money chases growth, it was Indian pharma companies which got the limelight and valuations.
Pharma MNC stocks - Upside potential
Feb 23, 2024
Company Name
Latest Avg Score
Reco
Analyst Count
Upside Potential%
Abbott India
9
Buy
7
14.4
Inst Stake %
7.3
Market Cap Type
Large
1Y Returns %
42.7
Market Cap Rs Cr
61,359
Company Name
GlaxoSmithKline Pharma
Latest Avg Score
9
Reco
Hold
Analyst Count
5
Upside Potential %
13.5
Inst Stake %
10.6
Market Cap Type
Large
1Y Returns %
67.2
Market Cap Rs Cr
36,580
Company Name
Pfizer
Latest Avg Score
6
Reco
Buy
Analyst Count
4
Upside Potential%
12.6
Inst Stake %
16.7
Market Cap Type
Large
1Y Returns %
16.7
Market Cap Rs Cr
20,541
Company Name
Sanofi India
Latest Avg Score
8
Reco
Buy
Analyst Count
8
Upside Potential %
-0.3
Inst Stake%
25.6
Market Cap Type
Large
1Y Returns %
70.6
Market Cap Rs Cr
21,217
Company Name
P&G Health
Latest Avg Score
10
Reco
Analyst Count
Upside Potential %
Inst Stake%
14.9
Market Cap Type
Mid
1Y Returns %
11.1
Market Cap Rs Cr
8,433
Company Name
Astrazeneca Pharma
Latest Avg Score
7
Reco
Analyst Count
Upside Potential%
Inst Stake %
4.8
Market Cap Type
Mid
1Y Returns %
63.7
Market Cap Rs Cr
13,740
Company Name
Novartis India
Latest Avg Score
7
Reco
Analyst Count
* Upside Potential %
Inst Stake %
0.2
Market Cap Type
Small
1Y Returns %
68.1
Market Cap Rs Cr
2,502
Calculated from highest price target given by analysts
source: et
Feb 24 2024, 08:25