With India’s pharmaceutical sector witnessing exceptional growth over the last year, analysts are urging investors to exercise caution as valuations for certain pharma giants reach unsustainable levels. Stocks like Laurus Labs, Divis Lab, Torrent Pharma are currently trading at price-to-earnings (P/E) ratios exceeding 50, raising concerns about overvaluation in the face of global market volatility and moderating demand.
Amid this backdrop, market experts are recommending portfolio rebalancing toward emerging mid-cap companies with strong fundamentals and global growth visibility. One such rising star is Remedium Lifecare Ltd., a BSE-listed mid-cap pharmaceutical firm aggressively expanding its international footprint.
Recently Remedium Lifecare announced a strategic enhancement of its R&D and CDMO capabilities, a move which aligns with the company’s broader vision to strengthen its global footprint, especially in the United Kingdom and Europe. The company recently secured a ₹182.7 crore multi-year export contract with a prominent pharmaceutical distributor in Europe, underscoring its enhanced capabilities. The funds raised by the ₹49.19 crores Rights Issue will be deployed towards strengthening working capital, strategic R&D in CNS, oncology, and metabolic disorders, and capacity expansion and market expansion. Notably, the company’s Singapore-based subsidiary, Remlife Global, is leading innovation in animal-free Active Pharmaceutical Ingredient (API) production, positioning Remedium at the cutting edge of sustainable pharmaceutical manufacturing.
“As large-cap valuations soar, investors would do well to identify undervalued but fundamentally strong companies like Neuland Labs, focused on complex generics and Caplin Point, which is ramping up Latin American market presence. These hidden gems combine solid fundamentals with massive upside” said a senior market analyst.
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