Reuters Market Eye - Shares in midcap pharmaceutical companies surged on Wednesday as investors are attracted by valuations after under performing recently versus larger rivals.
Wockhardt Ltd surged nearly 20 percent, Ranbaxy Laboratories Ltd was up about 9 percent, Strides Arcolab gained 9.9 percent, while Aurobindo Pharma Ltd rose 4.6 percent.
Most midcap pharma stock underperformed sectoral benchmark BSE healthcare index over last 1 year.
For graphic: http://link.reuters.com/nun28v
At the same time valuations are lower. Wockhardt is trading at 11.7 times 12-month forward earnings, Ranbaxy at 15.9 times while Strides at 13.7 compared with around 20 for Sun Pharmaceutical Industries and Lupin Ltd , according to Thomson Reuters StarMine.
(Reporting by Abhishek Vishnoi)
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app