Milan Vaishnav Expects Strong Pharma Index, Recommends ABB India and Siemens

Milan Vaishnav expects the Nifty Pharma index to remain strong, recommending ABB India and Siemens as portfolio stocks. ABB India shares surged 11% to a 52-week high after strong Q1 2024 results, while Siemens shares rose 7% ahead of its Q2 2024 results.

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Nitish Verma
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Milan Vaishnav Expects Strong Pharma Index, Recommends ABB India and Siemens

Milan Vaishnav Expects Strong Pharma Index, Recommends ABB India and Siemens

Milan Vaishnav, founder of Gemstone Equity Research & Advisory Services, expects the Nifty Pharma index to remain strong in the coming months. He recommends ABB India and Siemens as portfolio stocks, citing their structural uptrend.

Why this matters: The performance of the pharma index and individual stocks can have a significant impact on the overall economy and investor sentiment. A strong pharma sector can also drive innovation and job creation in the industry.

ABB India's material cost has fallen below 60% for the first time, which could improve profitability. The company's net profit has also increased by 82% to Rs 467 crore in the March quarter. Private capital expenditure is expected to remain robust, with no signs of slowing down soon.

Vaishnav believes that ABB India and Siemens are in a structural uptrend and should be part of one's portfolio. Shivangi Sarda, another market expert, expects these stocks to generate an 8-10% upmove from current levels.

Investors are bullish on ABB India, with some expecting the stock to continue its upward trend. The stock has shown resilience during the last bout of selling and is now valued at one-fifth of its foreign parent.

ABB India shares surged 11% to a 52-week high of ₹8,188.95 on NSE, driven by its strong Q1 2024 results, with revenue up 28%, EBITDA jumping 98%, and net profit surging 88%. Siemens shares soared over 7% to a 52-week high of ₹6,655 per share on NSE, ahead of its Q2 2024 results announcement.

In addition to his bullish stance on the pharma index and select stocks, Vaishnav predicts a corrective retracement in the Nifty Auto index. His top bets for May 2024 include Lupin and Tata Consultancy Services (TCS).

Key Takeaways

  • Milan Vaishnav expects Nifty Pharma index to remain strong in coming months.
  • ABB India and Siemens recommended as portfolio stocks due to structural uptrend.
  • ABB India's material cost falls below 60%, net profit increases by 82%.
  • Experts expect 8-10% upmove in ABB India and Siemens from current levels.
  • Vaishnav predicts corrective retracement in Nifty Auto index, recommends Lupin and TCS.