Bullish on pharma sector: Sonam Udasi, IDBI Capital

In a chat with ET Now, Sonam Udasi, Head of Research, IDBI Capital, shares his views on Ranbaxy.

ET Now: What is your sense on some of the specific names that have come out with earnings? What about Ranbaxy earnings?

Sonam Udasi: In terms of the earnings that have come out, IT continues to surprise and whenever there is an IT result for a particular company, the stock immediately gets re-rated whether it was HCL Tech during its time or Tech Mahindra now. So, that is a space to be in. If you get an opportunity again, one should start looking to build those portfolio because the PE multiples are not very high for that portion of the business. In terms of Ranbaxy specifically, though management tried to highlight that that facility does not take more than an X percentage of API, there is a concern and that will continue to cloud over the next few months as well. We are overall very constructive on the pharma sector as a whole. We think the midcap stocks, the large cap stocks will continue to do well but we would hedge our bets on a Sun Pharma or a Cipla rather than a Ranbaxy at this juncture.