Bullish on Torrent Pharma from 12-18 months perspective: Pankaj Sharma

In a chat with ET Now, Pankaj Sharma, ED, Equirus Securities, shares his top midcap idea.

ET Now: Share with us you top midcap bet?

Pankaj Sharma: We like Torrent Power a lot because this is a company where a lot of structural things are changing. One such thin is the utilisation of their gas-based plants. All of us know that the gas-based capacities have had serious issues in last so many years because of non-availability of gas and also because of the expensive imported gas.

So I think that is something which is changing now with the government allocating gas to many of these gas-based plants. Also if you look at the distribution part of the company, distribution business in areas like Agra has been doing very well. In a matter of three to five years, the company has been able to successfully turnaround the business.

There are also expectations that the Bhiwandi license could get extended. I think that could be a positive trigger for the company in the near term. But structurally, I like Torrent because it is a well-run, well-managed company. It was struggling with macro level issues in last two to three years. But once these issues get sorted out and distribution part does well, I think it is a stock which will definitely do very well in the next 12 to 18 months.