Sharing as its top stock pick idea for the month, domestic brokerage and research firm Anand Rathi said that pharma stock Laurus Labs has been under pressure since quiet some time but at this juncture its trading near its crucial support.
“Previously the stock turned from this level and we saw a rally towards 550. On chart, there is bullish gartley pattern which is looking lucrative along with RSI BAMM setup,” the brokerage highlighted.
Anand Rathi, which has a target price of ₹580 on Laurus Labs shares with a time frame of one month, has advised traders to go long in the stock with a stop loss of ₹450.
Laurus Labs is one of the leading research-driven pharmaceutical manufacturing companies in India. The company has grown to become one of the leading manufacturers of API for anti-retroviral (ARV), oncology, cardiovascular, anti-diabetics, anti-asthma, and gastroenterology.
For the quarter ending September, the pharma company posted a consolidated net profit decline of nearly 17% at ₹201.9 crore from ₹242 crore year-on-year (YoY) whereas its net sales increased to ₹1,203 crore as compared to ₹ ₹1,138.8 in the year-ago quarter.
In September last year, the board of directors of Laurus Labs had approved sub-division (stock split) of equity shares of the company from existing face value of ₹10 each to face value of ₹2 each (i.e. split of 1 equity share of ₹10 into 5 equity shares of ₹2 each), to make the stock more affordable for the small retail investors and to increase liquidity.
The pharma stock has given around 43% return this year (year-to-date or YTD) whereas in a year’s period it has risen over 45%. Whereas, since its stock split in September 2020, Laurus Labs shares have gained nearly 100%.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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