Lupin relentlessly compounding at 17-18%: Angel Broking

In a chat with ET Now, P Phani Sekhar, Fund Manager-PMS, Angel Broking, shares his views on Lupin.

ET Now: What is the call on Lupin?

P Phani Sekhar: Lupin offers two catalysts, which are so important for the market in the current conditions. It is relentlessly compounding at 17-18%, which is a healthy figure and more importantly there is a talk of some inorganic development in Lupin for quite sometime now. And this kind of news flow keeps markets excited in well run stocks like Lupin, because we need to understand that although these kind of rumours are floating around for so many stocks, but a large majority of them are not so good from a fundamental point of view.

Since Lupin is a very good candidate and people have actually seen very good healthy deals in the pharma space within the last two years, the street is excited and willing to give it a longer rope for the stock to fructify. Whether that fructifies or not, is a very different issue but that is what is helping the valuations, at least in the near term.