Sakar Healthcare Eyes Breakout: SEBI RA Sees Upside Amid EU Approvals, Strong Charts

The analyst expects a move above ₹375, with strong support at ₹324 and fundamentals backed by EU oncology approvals.

SEBI-registered analyst Gunjan Kumar flagged Sakar Healthcare for a potential breakout after the stock breached its resistance levels on the technical charts.

According to him, the stock is eyeing a potential breakout above ₹375, with ₹324 as the support level on a closing basis. At the time of writing, the stock was down 3% at ₹351.80.

Over the past three months, the stock has witnessed a sharp uptrend, gaining more than 45%. It has posted a monthly gain of 12%.

Kumar noted investments from foreign and domestic institutional investors in the past quarter, indicating underlying demand for the stock.

From a fundamental perspective, Sakar Healthcare posted its highest profit and revenue in the last 13 quarters. Additional marketing authorizations could add between ₹50 crores and ₹100 crores in revenue over the next three years.

Sakar manufactures a wide range of pharmaceutical products, including tablets, injections, syrups, and oncology drugs, with a focus on contract manufacturing. It exports to over 50 countries.

The company is expanding its oncology segment, supported by recent EU approvals that have enhanced its export potential.

On Wednesday, the company received its second marketing authorization for an oncology injection in the European Union. While the first approved product targets breast, lung, and prostate cancer, this new one is meant for treating colorectal cancer.

The company added that several more products are currently under EU registration and expects to receive approvals over the next few months.

Data from Stocktwits shows retail sentiment has turned ‘bullish’ on this counter from ‘neutral’ a week ago.

Year-to-date (YTD), Sakar Healthcare shares have gained 17.5%.

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