Hunt for midcap pharma names with reasonable valuations, high growth prospects: P Phani Shekhar

In a chat with ET Now, P Phani Sekhar, Fund Manager - PMS, Karvy Stock Broking, shares his views on midcap pharma stocks he likes.

ET Now: What is your favourite pharma theme? I am asking this to you because stocks from this sector registered strongest gains on Friday.

P Phani Sekhar: I continue to remain bullish on the pharma sector. However, there are a variety of stocks in the midcap pharma space. Some of them have performed so well that their valuations have come far ahead of their fundamentals.

To that extent, I will not be too surprised even if they correct by 20 per cent.

I am not saying that they would, but looking at their valuations, I would not mind even a 20 per cent correction in them.

Other than that, companies which are likely to perform well ove the next two years, which are likely to see margin improvement and have valuations reasonable at around 15-16 times, could be the kind of midcap pharma names that you would like to associate with.