Accumulate Natco Pharma and Ajanta Pharma: Vivek Mavani

Vivek Mavani, VP & Sr. Portfolio Manager in an interview with ET Now talks about pharma stocks.

Keeping in mind the overall pharmaceutical space since it's a little bit of a defensive play itself, would you take any kind of position to probably just take a slight hedge in a volatile market like this?

As far as pharma is concerned, I would focus largely on the Indian pharma opportunity where actually three companies clearly come to mind, Cadila Healthcare, Aurobindo Pharma and Lupin. All three of them clearly have a lot of positives working for them and the valuations are not so demanding so as not to make an investment argument in favour of them.

Having said that, there are several of I would say small-sized but they are not so small either. All of them in the vicinity of $100-250 million size, Indian pharma companies say the likes of a Natco pharma or an Ajanta Pharma, look quite interesting. Quarter after quarter quite a few of them seem to have delivery of numbers on track. Valuations are quite attractive, so those are the stocks one accumulates but these are not for any trading gains. These are for anybody having an outlook upwards of six months or maybe 6-18 months or 24 months, then it is a good time to accumulate some of these.