Pharma stocks trade at 'stratospheric' valuations; upside limited: Anand Tandon

In a chat with ET Now independent analyst Anand Tandon, shares his views on export-oriented sectors.

ET Now: What is the call that you are making on stocks of export-oriented IT and pharma sectors?

Anand Tandon: A major difference between stocks of IT and pharma sectors is valuations. In the pharma space, the companies which are selling drugs to regulated markets are trading at stratospheric valuations. Will they continue for the near-term? Possibly yes, as there are lack of other opportunities. But I would think that most of them, barring a few, are probably at a range where there is not that much left on the table. This may happen unless you assume that the overall market does not broaden in terms of its recovery over the next six to 12 months. I am not willing to bet on that, my own estimate is that…