Pharma Stock to Trade during crisis!

Analysis background

This stock has been one of the best performing stocks in terms of risk adjusted returns in the last 6 months. Though the stock has’nt really out performed the benchmark but it has restricted downside risk for the investors and has provided superior returns when markets bounced back. CIPLA has been resilient in times of extreme volatility. Barring Sunpharma , CIPLA is the only stock which is core pharma sector providing over 15% return on a TTM basis. We have collated some important data from https://finance.yahoo.com/ to analyse upside & downside ratio of the stock.

Price deviation

Technically this stock is in consolidating & trending phase. The stock is seeing buying interest at its support level and is continuously trading between a range. We expect that the investors will shift their focus on low deviation stocks as long as the Russia/Ukraine war crisis is going on .

Stock is currently trading at 923 we expect the stock to touch 957 during the march series. Below is our anticipation of the stock range and the levels to trade the range for CIPLA

Robust Shareholding Pattern

CIPLA has seen significant interests from Institutional Shareholders , the stock has seen increasing FII and DII share holding and reduced retail participation. This is a pre cursor of a large anticipated move in the underlying stock. In last 8 months DII have increased their holding to 22% from 18% in June 2021 and similarly FII have steadily increased it 25% and the major portion i.e 36% is with promoters . With a 80%+ strong shareholding CIPLA is poised to fire once the buying comes in broader market.

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