May 18, 2024 Ultimate News Hub

Reasons Why HDFC Securities Is Bullish On A Small Cap Pharma Stock?

HDFC Securities, a brokerage firm, initiated coverage in which it shared the rating on the small-cap pharma stocks. During the coverage, it provides the buy rating to the investors and gives a buying call on the target price. It is not the first time HDFC securities have been bullish on small-cap stocks. Previously, it shared the buying rating on different categories of small-cap shares, including real estate, technology, and more. 

HDFC securities itself is an unlisted company and subsidiary of HDFC bank. HDFC securities unlisted shares are traded in the Pre-IPO market, and this time it initiated coverage on the small-cap company like Marksans Pharma along with a target price. Read the blog to know why HDFC Securities is bullish on small-cap Pharma stocks.

What HDFC Securities Initiated in its Coverage of Pharma Stocks?

In a recent interview, Parag Thakkar, Head of Institutional Sales of HDFC Securities, said, “Exporters like Pharma and IT will benefit from a strong dollar.” He also shared his views on small-cap pharma stocks like Aurobindo and gave a clear sign that such stocks will show a 20-25 percent growth in the next few years. In November 2022, HDFC securities shared the buy rating on various pharma stocks with a bull target of Rs 66 in its coverage. 

In the recent coverage, a brokerage firm expects that the small-cap pharma stocks, including Marksans Pharma, will show exceptional growth and deliver a 10 per cent upside in a base case in the next three quarters. In its recent report, HDFC Securities stated, “The optimism emerges from the drugmaker’s focus on regulated markets of the US and UK while concentrating on high-margin soft gels and over-the-counter products.”

The brokerage firm has various views regarding its bullish on small-cap Pharma shares, including the expected target price and total growth in the next 5-10 years. 

Reasons Why HDFC Securities Provides Buying Rating On Small Cap Pharma Stocks

HDFC Securities is a reputed financial service and brokerage firm that shares the signs and buying data on various stocks. It is never easy for investors to decide to invest in stocks without solid reasons. You might be curious why HDFC securities are bullish on small-cap pharma shares. Here are the possible reasons behind it:

1- Demand In OTC Segment

Over-The-Counter (OTC) products of small-cap pharmaceutical companies remain in huge demand in the US and UK markets. HDFC Securities believes that drugmakers focus on these regulated markets and ensure the manufacturing of products that meet the market demands and provide high margins. There is also a strong sign that the pharma stocks like Marksans Pharma will likely see a higher price in the next 2-3 Quarters due to its stable demand with minimal price erosion.

2- Improvement In Margin

Various small-cap pharma stocks have shown substantial growth in the past few years, and it is due to the well-managed strategy of the companies and the efforts they made in maintaining the balance sheet. HDFC securities stated that many pharmaceutical companies support inorganic growth and show an impressive Compound Annual Growth Rate (CAGR) of 17% in the US, UK, New Zealand, and Australian markets. HDFC Securities believes that the CAGR of the small-cap Pharma Companies will touch 18-20% in the next two years.

3- Normal Operating Expenses

According to HDFC Securities, small-cap pharmaceutical companies have normal operating expenses that are expected to improve. The brokerage firm advises investors to buy small-cap pharma stocks in the band of Rs 68.80 to 69.50 with a bull case target of Rs 83.60 over the next two or three quarters. 

Apart from this, HDFC securities also considered the improved balanced sheets with equivalent cash of Rs 417 crore in December 2022. There is a precise estimate that the normal operating expenses will help the small-cap pharma stocks to grow in the market in the next five years.

Invest In Small Cap Unlisted Shares With Stockify

Small-cap companies have shown immense growth in the past few years. The majority of Pharmaceuticals and other categories of companies are not listed on the stock market. HDFC securities unlisted shares are openly traded in the Pre-Stock market and let investors buy or sell its stocks. The unlisted shares are considered the best investment option due to less risk and more diversification options. HDFC securities suggested PharmEasy as the prominent pharma stock that will show an excellent CAGR in the next few quarters.

You can easily buy PharmEasy or other unlisted shares with the help of Stockify. It is India’s trusted platform to check the latest prices and unlisted shares hassle-free. You can access the crucial financial details and prices of unlisted shares. Using the best-unlisted share brokerage like Stockify, you can start investing in trending unlisted shares before their listing on NSE/ BSE. 

Whether it’s HDFC Securities, OYO, Tata Technologies or NSE India’s unlisted shares, you will get complete guidance from experts in diversifying your portfolio by investing in top-performing unlisted companies. Explore the various unlisted shares on Stockify now!

 

Related Posts

What Goes into You Acquiring a Business?

August 31, 2022

August 31, 2022

When you have designs on buying a business, any thoughts on how successful you could be with it? Being a...

Starting A Business On A Limited Budget

May 28, 2021

May 28, 2021

Owning and running your own business is a dream that is held by lots of people, but if finances and...

Fun car accessories to liven up your vehicle

May 21, 2021

May 21, 2021

Whether you commute to work by car every day or are simply a big fan of road trips, there are...

5 Benefits Medical Billing Companies Offer To Urgent Care Centers

August 18, 2021

August 18, 2021

Urgent care centers have patients walk in to the clinics instead of seeking appointments, which is why such clinics do...

Saudi Arabia Export Guide

March 9, 2021

March 9, 2021

Whether you are importing a new product or enabling an ongoing business to function, exporting to Saudi Arabia can be...

Do You Put Your Employees in Position to Succeed?

September 24, 2022

September 24, 2022

Having a successful business is something many company owners dream of. That said the time, effort and money you put...

‘10’ Top Marketing Ideas for Salon Businesses!

February 8, 2021

February 8, 2021

So, you’ve designed a website, created a logo, or even purchased business cards, but is that enough? Well, flocking new...

Digital Trends That the Internet World Will Be Seeing In The Future

July 5, 2022

July 5, 2022

The digital era is completely changing every second, and we’re expecting some innovations on a bigger scale, particularly in the...

Buying a Business – What You Need to Know When Taking Over an Existing Business

May 26, 2021

May 26, 2021

When you are buying an existing business, there can be lots of things to think about, which can feel a...

How a Good Design Can Transform Your Business

January 30, 2023

January 30, 2023

When you visit a website, what is the first thing you notice? The design, is it not? It is not...

Why You Should Establish Your Business In NYC

October 29, 2021

October 29, 2021

Taking a risk and starting your own business is a very stressful, time-consuming, and expensive venture. However, no one has...

Why Your Company Needs Proxy Provider

November 21, 2021

November 21, 2021

Many of you might not be aware of the real purpose of proxy servers. You may just know that the...

What Would Make Your Business Better?

August 31, 2022

August 31, 2022

With all that you have to do in running a business, do you feel as if there are steps you...

What is Social Media Marketing and Why Does it Matter for Businesses?

June 30, 2021

June 30, 2021

Today, social media and business go hand in hand. Given the indispensability, it will not be an exaggeration to say...

Why do you choose the Zeromax Moving company services?

July 28, 2023

July 28, 2023

We are reliable and the best mover in New York; we offer the most reasonable costs for our clients and...

Comments
Leave a Reply