Insulin will be a major trigger for Biocon: Elara Capital

Surajit Pal, Analyst, Elara Capital in an interview with ET Now gives his perspective on pharma stocks.

Biocon has not been a great mover just in terms of the stock. But are you finding any real trigger out there that causes you to keep it on a buy list?

Insulin will be the No. 1 trigger going forward in terms of supplying crystal in this market. The second trigger will be their increasing domestic business. I believe that those businesses will keep on adding an extra dimension to the overall business. These are the three main areas that they will be seeing that more growth to come.

If you could just give us your rationale as to why you are bullish on these two stocks, Dishman Pharma and Glenmark Pharmaceuticals?

Dishman was going into a bad phase last year June quarter. So if you see the year on year numbers, which is right now from June quarter onwards, it will be comparable. Most of the negativity in the counter has already been factored. Which means that out their clients, which they have been serving for last 3-5 years, even if one client has been clicked like Eprosartan what they have been supplying to Solvay, that will be one big business. So it could come anytime and we do not know, but there is definitely a springboard ready and they could get benefit out of it anytime as and when those deals are decided.