Overweight on pharma sector, Lupin remains a buy: Lalit Thakkar, Angel Broking

In a chat with ET Now, Lalit Thakkar, MD Institution, Angel Broking, shares his views on pharma sector.

ET Now: You also track Lupin with a magnifying glass. They came out with good set of numbers. Lupin is almost at Rs 600 now. Do you think in the near term, given the way they have come out with a strong quarterly performance, Lupin could be a Rs 650 stock?

Lalit Thakkar: In the pharma sector, our approach is top-down. Companies are showing good growth rates of at least 20% per annum and the stocks’ valuations also are quite reasonable. They are still not beyond 18 PE. Lupin is trading at 16.5-17 PE on FY13 earnings.

If we are ready to give these kinds of valuations to TCS or the IT sector, the pharma sector is also delivering the same growth rate and similar ROE. So I do not mind being overweight on the pharma sector and Lupin remains a buy in this space.