Hi,
I am new to this forums and investing since last 2 year. I have checked out some pharma companies to buy for long term hold (5-10 years or even more).
I have not invested in any of them yet so please need your honest opinion before I make any investment decision.
P & G Health
Debt: 0.00 Cr
Stock P/E: 8.61
ROCE: 78.16 %
ROE: 73.25 %
Sales Growth (3Yrs): -3.32 %
Dividend Yield: 9.96 %
Promoter holding: 51.82 %
Pfizer
Debt: 2.50 Cr
Stock P/E: 32.75
ROCE: 23.22 %
ROE: 15.07 %
Sales Growth (3Yrs): 1.13 %
Dividend Yield: 0.70 %
Promoter holding: 63.92 %
Divis Labs
Debt: 105.60 Cr
Stock P/E: 34.59
ROCE: 27.66 %
ROE: 20.32 %
Sales Growth (3Yrs): 9.47 %
Dividend Yield: 0.92 %
Promoter holding: 52.01 %
Thyrocare
Debt: 0.00 Cr
Stock P/E: 26.74
ROCE: 31.25 %
ROE: 20.21 %
Sales Growth (3Yrs): 16.34 %
Dividend Yield: 3.95 %
Promoter holding: 65.95 %
Suven Life Science
Debt: 38.02 Cr
Stock P/E: 47.32
ROCE: 16.95 %
ROE: 9.44 %
Sales Growth (3Yrs): 9.93 %
Dividend Yield: 0.53 %
Promoter holding: 60.00 %
Glaxosmithkline Pharmaceuticals Ltd
Debt: 0.58 Cr
Stock P/E: 55.01
ROCE: 31.15 %
ROE: 19.96 %
Sales Growth (3Yrs): 3.45 %
Dividend Yield: 1.39 %
Promoter holding: 75.00 %
Thanks.
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Welcome to VP @acepicker
If you’re looking for Portfolio building advice, please leave a short paragraph about each Company and the risk-rewards for investing in it. Numbers only go so far.
3 Likes
Hope you know Pharma sector is too much controlled and regulated by external factors. I personally do not like USFDA intervention and strictly avoid Pharma in my investing pattern. One fine morning USFDA will issue 3/4 observation and your stock will go deep down next morning.
I had this kind of bad experience in Sun pharma(made exit cost to cost), Divis lab(made exit with small profit), and Natco Pharma(exit with small profit). All are 2/3 yrs old story.
So would request you think 100 times before entering in Pharma sector. My personal opinion.
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Bank/NBFCs :: NPA
Pharma :: USFDA
Investors think they always know the LHS of the equation very well.
But,
Value can be understood only, if we have the ability to crack the RHS of the equation.
4 Likes
2 parts to this.
1.I you want to play the domestic pharma story, buy the MNCs like pfizer glaxo etc. as its their indian business only which we get.
2. If u buy the bigger domestic cos. like sun, lupin, dr.reddy, cipla etc, u get the indian as well as the international business.
In my humble opinion:
although the indian cos have a lot of FDA issues, they are one of the best and the most cost effective pharma cos on the planet. Now a days they r innovative too !
They have created amazing assets over decades and will do better gng ahead.
The correction in the pharma cos in the past few yrs gives an amazing opportunity to buy these word class cos as a price where the risk / retrun favors the investors. I would as an investor be very keen on buying sun and lupin.
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