Pharma companies continue with their charm at Dalal street

Lupin Ltd., a major pharma giant, hit one-month highs on news that a major drug from its Goa plant had got a nod from the US Foods and Drugs Administration.

Lupin gained for a second day and hit its highest level since July 22nd. The stock jumped 80 rupees, or 4.5 percent, to 1,873.65 rupees on the National Stock Exchange where 7.7 lakh shares were traded compared with the 5-day average of 11.1 lakh shares.

Lupin was the top traded counter on the Sensex, where 17 crore rupees worth of stock was traded in the first 40 minutes of trade.

Lupin's market capitalisation has gained 50 percent to 80,700 crore rupees in the past one year as investors preferred the relative safety of pharma sales and profit. The stock trades 8.7 times its book value of 207 rupees. Lupin's sales have surged 22 percent compounded for the past five years and profit has jumped 28 percent compounded over the same period.

(Image credits: Indiatimes)