Pharmaceutical sector is one of the safest sectors to be in turbulent market conditions. It outperformed the most of the sectors in 2008 and there won’t be any deal, if it happens again. One of the biggest reasons behind is their market which is quite insulated to current market factors like inflation, interest rates and instable political situation.
It is not that it is completely insulated from these factors, they will have negative impact on the pharma sector as well but there impact is somewhat less on these companies. So, it can be considered that Pharma space is one of the best sectors for turbulent market.
Now we have to look at the companies in this space which can yield us good return and provide some level of security too. Cipla is one of the best pharma companies in India to invest. It has performed very well in 2008 when most of the stocks were falling like cards.
Cipla has reported their Q2 results and results are further adding agreement to this. They reported a net profit of Rs 309 crore with a growth of 17.5 per cent which is very encouraging in current market conditions. Net sales have gone up to Rs 1732 crore in comparison of Rs 1580 last year.
These numbers are extremely good looking at the market condition in last quarter and it is good not only for short term but also extremely good for long term investments. Cipla has delivered consistently good results and as per their chairman’s recent comment, they are trying to increase the exports so that they can get better international pricing.
These all factors will positively contribute to the stock. Company is doing well and management has proved their ability to push through tough times. So investors with medium to long term view can invest in Cipla.
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