Fincash » Mutual Funds India » Pharma Sector Shining in the Midst of Coronavirus
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Coronavirus has impacted the global Economy, due to which the domestic equity faced a huge decline. Most stocks have been hit low records. The BSE Sensex and NSE Nifty had their worst run since the 2nd week of March. On 18th March, Sensex ended at 28,896 points by falling 1709 points while Nifty failed below 8500 points.
In the midst of the mayhem, the pharma sector looks less affected as it is profiting handsomely. Investors hunting for safe havens in the ongoing turmoil can consider Investing in the pharma sector as it is showing an improving trend in Earnings.
In recent years, the pharmaceutical sector has augmented as the new listing of hospitals and diagnostic companies have been added more to the basket. The government policies and rising Income levels are giving robust growth in this sector.
The pharmaceutical sector was valued at US$33 billion in 2017. In 2018, the Indian pharmaceutical exports stood at US$17.27 billion and reached US$19.14 billion in 2019. The pharmaceutical Industry is anticipated to expand at a CAGR of 22.4% by 2020.
Indian companies received 304 Abbreviated New Drug Application from the US Food and Drug Administration in 2017. The pharma sector will expand and will reach US$55 billion by 2025.
The pharmaceuticals exports bulk drugs, intermediates, drug formulations, biologicals, herbal products and so on. India’s biotechnology industry compromising bio-agriculture, bio-industry, bio-pharmaceuticals and so on is expected to grow at the moderate rate of around 30% a year and it is expected to reach US$ 100 billion in the coming years.
The pharma sector provides several opportunities for investments and trade due to the following factors:
(Erstwhile SBI Pharma Fund) To provide the investors maximum growth opportunity through equity
investments in stocks of growth oriented sectors of the economy. SBI Healthcare Opportunities Fund is a Equity - Sectoral fund was launched on 31 Dec 04. It is a fund with High risk and has given a Below is the key information for SBI Healthcare Opportunities Fund Returns up to 1 year are on The primary investment objective of the scheme is to seek to generate consistent returns by investing in equity and equity related or fixed income securities of Pharma and other associated companies. Nippon India Pharma Fund is a Equity - Sectoral fund was launched on 5 Jun 04. It is a fund with High risk and has given a Below is the key information for Nippon India Pharma Fund Returns up to 1 year are on (Erstwhile UTI Pharma & Healthcare Fund) The Investment objective of the Scheme is capital appreciation through investments in equities and equity related instruments of the Pharma & Healthcare sectors. UTI Healthcare Fund is a Equity - Sectoral fund was launched on 28 Jun 99. It is a fund with High risk and has given a Below is the key information for UTI Healthcare Fund Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2023 (%) SBI Healthcare Opportunities Fund Growth ₹416.847
↓ -4.07 ₹3,203 15.9 20.4 48.4 21.1 31.2 38.2 Nippon India Pharma Fund Growth ₹516.982
↓ -1.47 ₹8,648 15.5 20.1 47.6 18.7 30 39.2 UTI Healthcare Fund Growth ₹287.085
↓ -1.52 ₹1,168 21.3 28.2 56 19 30.2 38.2 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 Oct 24 1. SBI Healthcare Opportunities Fund
CAGR/Annualized
return of 16% since its launch. Ranked 34 in Sectoral
category. Return for 2023 was 38.2% , 2022 was -6% and 2021 was 20.1% . SBI Healthcare Opportunities Fund
Growth Launch Date 31 Dec 04 NAV (03 Oct 24) ₹416.847 ↓ -4.07 (-0.97 %) Net Assets (Cr) ₹3,203 on 31 Aug 24 Category Equity - Sectoral AMC SBI Funds Management Private Limited Rating ☆☆ Risk High Expense Ratio 2.09 Sharpe Ratio 2.32 Information Ratio 0.51 Alpha Ratio -0.99 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-15 Days (0.5%),15 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 19 ₹10,000 30 Sep 20 ₹16,390 30 Sep 21 ₹21,533 30 Sep 22 ₹20,079 30 Sep 23 ₹25,897 30 Sep 24 ₹38,702 Returns for SBI Healthcare Opportunities Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 3 Oct 24 Duration Returns 1 Month 2.2% 3 Month 15.9% 6 Month 20.4% 1 Year 48.4% 3 Year 21.1% 5 Year 31.2% 10 Year 15 Year Since launch 16% Historical performance (Yearly) on absolute basis
Year Returns 2023 38.2% 2022 -6% 2021 20.1% 2020 65.8% 2019 -0.5% 2018 -9.9% 2017 2.1% 2016 -14% 2015 27.1% 2014 56.8% Fund Manager information for SBI Healthcare Opportunities Fund
Name Since Tenure Tanmaya Desai 1 Jun 11 13.26 Yr. Pradeep Kesavan 31 Dec 23 0.67 Yr. Data below for SBI Healthcare Opportunities Fund as on 31 Aug 24
Equity Sector Allocation
Sector Value Health Care 90.07% Basic Materials 6.15% Asset Allocation
Asset Class Value Cash 3.76% Equity 96.24% Top Securities Holdings / Portfolio
Name Holding Value Quantity Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Dec 17 | SUNPHARMA12% ₹383 Cr 2,100,000
↓ -100,000 Divi's Laboratories Ltd (Healthcare)
Equity, Since 31 Mar 12 | DIVISLAB6% ₹183 Cr 360,000
↓ -40,000 Lupin Ltd (Healthcare)
Equity, Since 31 Aug 23 | 5002576% ₹179 Cr 800,000
↑ 132,234 Max Healthcare Institute Ltd Ordinary Shares (Healthcare)
Equity, Since 31 Mar 21 | 5432205% ₹174 Cr 2,021,773
↓ -78,227 Cipla Ltd (Healthcare)
Equity, Since 31 Aug 16 | 5000875% ₹165 Cr 1,000,000 Lonza Group Ltd ADR (Healthcare)
Equity, Since 31 Jan 24 | LZAGY5% ₹164 Cr 300,000 Poly Medicure Ltd (Healthcare)
Equity, Since 31 Aug 24 | 5317685% ₹149 Cr 638,297
↑ 638,297 Krishna Institute of Medical Sciences Ltd (Healthcare)
Equity, Since 30 Nov 22 | 5433084% ₹127 Cr 500,000 Aether Industries Ltd (Basic Materials)
Equity, Since 31 May 22 | 5435344% ₹125 Cr 1,400,000 Jupiter Life Line Hospitals Ltd (Healthcare)
Equity, Since 31 Aug 23 | 5439804% ₹120 Cr 900,000
↑ 7,119 2. Nippon India Pharma Fund
CAGR/Annualized
return of 21.4% since its launch. Ranked 35 in Sectoral
category. Return for 2023 was 39.2% , 2022 was -9.9% and 2021 was 23.9% . Nippon India Pharma Fund
Growth Launch Date 5 Jun 04 NAV (04 Oct 24) ₹516.982 ↓ -1.47 (-0.28 %) Net Assets (Cr) ₹8,648 on 31 Aug 24 Category Equity - Sectoral AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk High Expense Ratio 1.88 Sharpe Ratio 2.45 Information Ratio -0.08 Alpha Ratio 1.11 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 19 ₹10,000 30 Sep 20 ₹16,072 30 Sep 21 ₹21,926 30 Sep 22 ₹20,112 30 Sep 23 ₹25,121 30 Sep 24 ₹37,270 Returns for Nippon India Pharma Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 3 Oct 24 Duration Returns 1 Month 0.4% 3 Month 15.5% 6 Month 20.1% 1 Year 47.6% 3 Year 18.7% 5 Year 30% 10 Year 15 Year Since launch 21.4% Historical performance (Yearly) on absolute basis
Year Returns 2023 39.2% 2022 -9.9% 2021 23.9% 2020 66.4% 2019 1.7% 2018 3.6% 2017 7.6% 2016 -10.6% 2015 19.4% 2014 49.5% Fund Manager information for Nippon India Pharma Fund
Name Since Tenure Sailesh Raj Bhan 1 Apr 05 19.43 Yr. Kinjal Desai 25 May 18 6.27 Yr. Data below for Nippon India Pharma Fund as on 31 Aug 24
Equity Sector Allocation
Sector Value Health Care 96.47% Asset Allocation
Asset Class Value Cash 2.6% Equity 97.4% Top Securities Holdings / Portfolio
Name Holding Value Quantity Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Oct 09 | SUNPHARMA14% ₹1,194 Cr 6,556,349 Lupin Ltd (Healthcare)
Equity, Since 31 Aug 08 | 5002578% ₹718 Cr 3,203,676 Divi's Laboratories Ltd (Healthcare)
Equity, Since 31 Mar 12 | DIVISLAB8% ₹688 Cr 1,350,808 Cipla Ltd (Healthcare)
Equity, Since 31 May 08 | 5000876% ₹513 Cr 3,100,000 Dr Reddy's Laboratories Ltd (Healthcare)
Equity, Since 30 Jun 11 | DRREDDY6% ₹492 Cr 700,030 Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 30 Sep 20 | APOLLOHOSP5% ₹449 Cr 648,795 Ajanta Pharma Ltd (Healthcare)
Equity, Since 30 Apr 22 | AJANTPHARM4% ₹311 Cr 959,323 Vijaya Diagnostic Centre Ltd (Healthcare)
Equity, Since 30 Sep 21 | 5433503% ₹276 Cr 3,027,149 Gland Pharma Ltd (Healthcare)
Equity, Since 30 Nov 20 | GLAND3% ₹276 Cr 1,500,000 Aurobindo Pharma Ltd (Healthcare)
Equity, Since 31 Dec 15 | AUROPHARMA3% ₹267 Cr 1,702,630
↓ -98,170 3. UTI Healthcare Fund
CAGR/Annualized
return of 15.5% since its launch. Ranked 40 in Sectoral
category. Return for 2023 was 38.2% , 2022 was -12.3% and 2021 was 19.1% . UTI Healthcare Fund
Growth Launch Date 28 Jun 99 NAV (04 Oct 24) ₹287.085 ↓ -1.52 (-0.53 %) Net Assets (Cr) ₹1,168 on 31 Aug 24 Category Equity - Sectoral AMC UTI Asset Management Company Ltd Rating ☆ Risk High Expense Ratio 2.38 Sharpe Ratio 2.49 Information Ratio -0.01 Alpha Ratio 1.29 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 19 ₹10,000 30 Sep 20 ₹16,648 30 Sep 21 ₹21,858 30 Sep 22 ₹19,247 30 Sep 23 ₹23,816 30 Sep 24 ₹37,158 Returns for UTI Healthcare Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 3 Oct 24 Duration Returns 1 Month 2.7% 3 Month 21.3% 6 Month 28.2% 1 Year 56% 3 Year 19% 5 Year 30.2% 10 Year 15 Year Since launch 15.5% Historical performance (Yearly) on absolute basis
Year Returns 2023 38.2% 2022 -12.3% 2021 19.1% 2020 67.4% 2019 1.2% 2018 -7.5% 2017 6.2% 2016 -9.7% 2015 12.4% 2014 43.7% Fund Manager information for UTI Healthcare Fund
Name Since Tenure Kamal Gada 2 May 22 2.34 Yr. Data below for UTI Healthcare Fund as on 31 Aug 24
Equity Sector Allocation
Sector Value Health Care 95.09% Financial Services 1.33% Basic Materials 1.06% Asset Allocation
Asset Class Value Cash 2.41% Equity 97.48% Debt 0.11% Top Securities Holdings / Portfolio
Name Holding Value Quantity Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Oct 06 | SUNPHARMA11% ₹134 Cr 735,274 Cipla Ltd (Healthcare)
Equity, Since 31 Jan 03 | 5000877% ₹78 Cr 469,180 Ajanta Pharma Ltd (Healthcare)
Equity, Since 31 Jul 17 | AJANTPHARM6% ₹65 Cr 200,000
↓ -35,000 Dr Reddy's Laboratories Ltd (Healthcare)
Equity, Since 28 Feb 18 | DRREDDY5% ₹61 Cr 87,100 Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 30 Apr 21 | APOLLOHOSP4% ₹45 Cr 64,796 Glenmark Pharmaceuticals Ltd (Healthcare)
Equity, Since 31 Mar 24 | GLENMARK4% ₹43 Cr 250,331 Eris Lifesciences Ltd Registered Shs (Healthcare)
Equity, Since 31 Mar 19 | ERIS4% ₹41 Cr 297,746 Aurobindo Pharma Ltd (Healthcare)
Equity, Since 31 Oct 13 | AUROPHARMA3% ₹39 Cr 250,000
↓ -5,167 Procter & Gamble Health Ltd (Healthcare)
Equity, Since 31 Dec 20 | 5001263% ₹39 Cr 74,000 Fortis Healthcare Ltd (Healthcare)
Equity, Since 31 Dec 20 | 5328433% ₹35 Cr 634,445
Medical spending in India has projected to grow 9-12 per cent over the next five years. Further, the growth in domestic sales may increase because of coronavirus. To add more, in such a volatile phase, there are a few Mutual Funds that are performing well.
Speedy introduction of generic or new drugs into the market are in focus and it has expected to benefit the Indian Pharmaceutical companies.
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