Muhurat Trading: Piramal Pharma, Blue Jet Healthcare In Focus — Check New Stock Rating, Price Target

Kotak Institutional Equities has upgraded Blue Jet Healthcare to a 'buy' rating while increasing the target price for Piramal Pharma, as the brokerage firm cited big opportunities for both the pharmaceutical companies in the rapidly evolving global market for high-cholesterol drugs.

In its latest note, Kotak noted that the market for cholesterol drugs is going through significant innovation. New oral therapies are coming up to challenge traditional treatments, which in turn could serve as an opportunity for domestic players such as Blue Jet and Piramal Pharma.

Kotak has maintained its 'buy' rating on Piramal Pharma while increasing the target price from Rs 305 to Rs 325, citing the company's manufacturing contract agreement with New Amsterdam for a fixed-dose combination of Obicetrapib and Ezetimibe.

Obicetrapib and Ezetimibe are two separate medications, which, when used together, form a dual-action therapy to lower cholesterol levels.

Piramal's deal with New Amsterdam is expected to general annual sales of $50 million, likely starting somewhere around FY28.

Kotak believes this deal will help Piramal Pharma make use of an under-utilised facility in Sellersville, potentially helping the company offset a projected FY24 Ebitda loss of $15 million at the site.

As for Blue Jet Healthcare, Kotak Institutional Equities has made a contradictory move by upgrading the stock from 'add' to 'buy' while lowering the target price significantly.

Kotak has lowered the target price for Blue Jet from Rs 900 to Rs 825, citing the lowering of long-term earnings estimates for its key drug, Bempedoic acid.

At the same time, the brokerage firm believes the recent drawdown in the Blue Jet stock - around 34% in the last three months - is overdone and therefore, Kotak believes this has created an attractive entry point for investors. This is why the firm has upgraded the stock to a 'buy' whilst lowering the target price.