Buy Lupin, Aurobindo Pharma, Biocon in pharma space: Sonam Udasi

In a chat with ET Now, Sonam Udasi, Head of Research, IDBI Capital shares his view on pharma sector:

ET Now: Given that there was so much excitement in the mid tier pharmaceutical space these two get badgered for very specific reasons to their companies, how are you evaluating the deal and the prospects of business of both the companies and the stocks thereby?

Sonam Udasi: If we only see Torrent pharma, while every other midcap has rallied and is near 52-week highs and valuations have expanded, Torrent has been a laggard in the last one year, that is because –1) the domestic business is not doing too well, also they have a business outside which is in Brazil which is also not doing that well.

Shelcal is a great brand. People could go and buy a growth stock something like a Lupin or Aurobindo or Biocon which are doing great in the US. There is trigger on valuation as well. Even Cipla is a laggard but then there is a potential there that valuations are attractive and at some point it should turnaround.