Healthcare stocks rally over 2% as CLSA upgrades Dr Lal Pathlabs and Aurobindo; DRL drops on downgrade
Healthcare stocks rallied on Thursday as Dr Lal Pathlabs and Aurobindo Pharma surged over 2% after CLSA upgraded their ratings to “outperform.” In contrast, Dr Reddy's Laboratories dropped 1% following a downgrade to «underperform.»
The Nifty Healthcare Index advanced 0.6%, reflecting overall bullish sentiment in the sector.
Dr Lal Pathlabs gained 2.7% to close at Rs 2918.75 as CLSA raised its target price to Rs 3240 from Rs 3110, implying a potential upside of 11% from its current levels. Aurobindo Pharma climbed 2.8% to Rs 1224.8, despite a cut in its target price to Rs 1400 from Rs 1540, suggesting a potential upside of 14% from its current levels.
Meanwhile, Dr Reddy’s slipped to Rs 1282.40 after CLSA expressed concerns over generic price erosion and competition for key drugs, reducing its target price to Rs 1090 from Rs 1140, indicating a downside of around 15% from its current levels.
CLSA’s report projected 8-9% growth for the Indian pharmaceutical market in 2025, outpacing expectations for the U.S. market. The brokerage favoured domestic-focused players and diagnostics over export-driven companies, highlighting Apollo Hospitals, Max Healthcare, and Dr Lal Pathlabs as its top picks.
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