'Pharma space looks exciting'

Ashit Suri, Fundamental Research Analyst, JV Capital Services, spoke to ET Now on pharma stocks prospects. Excerpts:

What's the call on Dr. Reddy's from the larger pharma stock obviously we have got a lot of news to around its getting new US FDA approvals also is going to launch generic version of Allegra which again for just FY11 will give it around $55 million kind of revenues so Dr Reddy at this point in terms of six months perspective is it looking good?

The stock does look okay the point is that again like I said we are at the higher end of the valuation band to get in at this point of time the pharma space looks exciting over the medium to long term prospects look good, markets are improving, a lot of patent issues are to be cleared so that there is a lot of story happening on that front also but again if one is to look at the space I would still look at a peer like Aurobindo Pharma which is more comfortable on the valuation front and some of the smaller players which actually have really moved so one can wait for some corrections and accumulate stocks like a Torrent Pharma or even a Unichem Laboratories which are smaller players like I said but then the story is very good. They have been posting very good numbers so these are stocks at the moment I would look at for the larger players like Lupin or Dr.Reddy's I would wait for some corrections and then get into accumulating these type of stocks.