Best Momentum Sector in Last Quarter of 2025: Pharma Sector
Overview of the Pharma Sector
The pharmaceutical sector is poised to gain momentum in the last quarter of 2025, driven by increasing global demand for generics, rising healthcare expenditure, and advancements in drug development. Several macroeconomic and industry-specific factors are expected to push this sector to the forefront of market growth. With a growing focus on innovation, regulatory approvals, and expansion into global markets, pharma companies are set to deliver robust financial performance.
Two standout stocks in this segment are Divis Laboratories and Zydus Life Sciences, both of which are positioned well for strong returns in the last quarter of 2025.
Divis Laboratories: Buy on Dips from August to December 2025
Fundamental Analysis
- Leadership in API Manufacturing: Divis Laboratories is a global leader in active pharmaceutical ingredient (API) production, with a significant share in the global supply chain.
- Strong Research & Development (R&D) Investments: The company continuously invests in R&D, ensuring a robust pipeline of new and innovative products.
- Financial Strength: With steady revenue growth, healthy operating margins, and a strong balance sheet, Divis Labs remains a fundamentally sound investment.
- Growing Global Presence: The company is expanding its reach into highly regulated markets such as the U.S. and Europe, leading to a steady increase in exports.
- Government Initiatives and PLI Scheme: Support for domestic API production through government incentives reduces reliance on imports and boosts profitability.
Technical Analysis
- Support Levels: Strong support near Rs.3,200 - Rs.3,300.
- Resistance Levels: Expected resistance at Rs.3,800 - Rs.4,000.
- Moving Averages:
- 50-Day Moving Average (DMA): Indicates short-term accumulation zones.
- 200-Day Moving Average (DMA): Sustaining above this level will confirm long-term bullish momentum.
- Relative Strength Index (RSI): RSI above 55 suggests strong buying interest.
- MACD (Moving Average Convergence Divergence): A bullish crossover confirms potential upside momentum.
Investment Strategy: Investors should accumulate Divis Laboratories on dips from August to December 2025, with an expected return of 15-18%.
Zydus Life Sciences: Buy on Dips from September to December 2025
Fundamental Analysis
- Expanding Product Portfolio: Zydus Life Sciences continues to expand its generic and specialty drug offerings, strengthening its market position.
- Strong Revenue Growth: The company is seeing significant sales growth in both domestic and international markets.
- Improved Profitability & Debt Reduction: Zydus has implemented strategic cost-cutting measures, improving operational efficiency and reducing debt.
- Regulatory Approvals: The company has recently received U.S. FDA approvals, enabling it to expand its footprint in regulated markets.
- Focus on Innovation: With continued investments in research, Zydus is well-positioned to introduce new drugs that cater to unmet medical needs.
Technical Analysis
- Support Levels: Strong support near Rs.550 - Rs.580.
- Resistance Levels: Expected resistance at Rs.650 - Rs.680.
- Moving Averages:
- 50-Day Moving Average (DMA): Indicates key short-term accumulation zones.
- 200-Day Moving Average (DMA): Staying above this level suggests long-term strength.
- RSI: An RSI above 60 signals strong upward momentum.
- MACD: A bullish crossover confirms an uptrend.
Investment Strategy: Investors should consider buying Zydus Life Sciences on dips from September to December 2025, with a projected return of 16-20%.
The pharma sector is set to be the top momentum sector in the last quarter of 2025, driven by favorable macroeconomic conditions, increasing demand for healthcare products, and continuous innovation. Stocks like Divis Laboratories and Zydus Life Sciences present excellent buying opportunities based on both fundamental strengths and technical indicators. Investors looking for stable, high-growth opportunities should focus on accumulating these stocks strategically during their respective periods for optimal returns.
| S.No | Stock Name | Price For | Price | current |
|---|---|---|---|---|
| 1 | Divis Laboratories | buy | ₹ 100 | ₹ 200 |
| 2 | Zydus Life Sciences | buy | ₹ 100 | ₹ 200 |