Ipca, Indoco Remedies attractive in pharma space: Sudip Bandyopadhyay

In a chat with ET Now, Sudip Bandyopadhyay, Managing Director & CEO, Convexity Solutions, shares his views on the outlook of pharma stocks.

What is the sense on pharma companies?

We are pretty bullish on the pharma space. Indian pharma deserves a re-rating and it is happening while we are watching all the market continuously moving up. Pharma is getting rerated. India is a large consumption market but multinational pharma companies have very clearly realized that India is going to be the manufacturing base for quality pharma products and that is changing the entire space. We have seen a spurt in M&A activities. A lot of Indian companies are expanding into the international market taking the advantage of low cost base in India. If I were to put my money, I would choose the midcap space because there are undervalued less aggressively valued pharma stocks available in the midcap space. Companies like Ipca and Indoco Remedies are very attractively priced today. They have a significant international presence, a strong domestic market presence and they are expanding their market by tie ups and by sourcing arrangements with multinational companies. So, it is a good story. To an extent, it is defensive but it has started moving with the market so I am not very sure about the defensive bit any longer but it will definitely keep moving up as India keeps moving.