Pharma stocks are an expensive bet: IV Subramaniam

In a chat with ET Now,IV Subramaniam, MD & CIO, Quantum Advisors, shares his views on pharma stocks.

ET Now: Pharma has managed to outperform just about every other index do you think at these levels there is some degree of misplaced optimism in pharma?

IV Subramaniam: We have not been very bullish on these stocks because purely on valuations many of them look to us very expensive so we have been cautious and staying away from them.

If you look at many Indian companies they have significantly increase their R&D spends and they are doing well in terms of where they are now and where they see themselves over the next few years. Many of them have also improved on their processes and that makes them fairly insulated against any regulatory issues but it is a matter of valuation so stocks like which you have mentioned right now Sun Pharma to us they look expensive so if it becomes cheaper and it comes within our buy limit we would definitely add to these stock. stocks are an expensive bet: IV Subramaniam

IV Subramaniam: We have not been very bullish on these stocks because purely on valuations many of them look to us very expensive so we have been cautious and staying away from them.

If you look at many Indian companies they have significantly increase their R&D spends and they are doing well in terms of where they are now and where they see themselves over the next few years. Many of them have also improved on their processes and that makes them fairly insulated against any regulatory issues but it is a matter of valuation so stocks like which you have mentioned right now Sun Pharma to us they look expensive so if it becomes cheaper and it comes within our buy limit we would definitely add to these stock.