JB Chemicals is very safe stock at current level: G Chokkalingam

G Chokkalingam, Executive Director & Chief Investment Officer, Centrum Wealth Management, talks to ET Now on pharma stocks.

Anything in the pharma space that excites you?

We have been focussing on pharma companies, which are least leveraged considering the difficult timing now in terms of interest costs rising. So we have been buying GSK Pharma, Indoco Remedies and JB Chemicals. Among these three, we have been aggressively buying JB Chemicals because while its market cap is around 580 crores.

The free cash on the book is around 500 crores. The management quality is also too good because in spite of having 54% stake in the company. They rewarded the shareholders with a special dividend. They paid as much as close to 300 crores as special dividend. So therefore, we have been buying and it is a very safe stock at the current level.