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How to identify a potential stock in pharma sector

Discussion in 'Technical Analysis' started by jiju6justus, Aug 9, 2017.

  1. jiju6justus

    jiju6justus Member

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    Is sun pharma, that hit 52 week low a good pick. If not then y?
     
    jiju6justus, Aug 9, 2017
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  2. bnnarayana

    bnnarayana Contributor

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    It is not a good pick, even though it has hit 52 Week low, I will just give two fundamental feed back let other members also give their openion.
    1. Net sales are down.
    2. Interest rates paid by the company is very high, which is eating out what ever the small profit the are showing.

    Sent from my Le X526 using DIY Technical Analysis mobile app
     
    bnnarayana, Aug 9, 2017
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  3. shabbir

    shabbir Administrator Staff Member

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    When you look at Sun Pharma the profit has eroded from its top and at what PE it was trading 1 year forward and as of today, it is still trading at the same PE multtiple of one year forward earning. It means though there is a price correction but then it hasn't become cheap.

    If you happen to find other company that is trading at a discounted one year PE multiple from where it was trading, it is a good buy in pharma sector.
     
    shabbir, Aug 9, 2017
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