Pharma will continue to do well in foreseeable future: Vijai Mantri

In a chat with ET Now, Vijai Mantri, MD & CEO, Pramerica Mutual Fund shares his views on the pharma space.

ET Now: Which stocks do you like out of the pharma pack?

Vijai Mantri: We are overweight on the pharma sector. If you look at domestic market, the demand will continue to remain in the pharma business. A lot of pharma companies have huge earnings coming from the export. These companies have done some acquisitions and earnings will continue to come from these companies.

They are debt free companies and return on equity is very good. Pharma is one sector that will continue to deliver good numbers.

If you compare pharma sector with FMCG sector, there is more robustness as far as earning is concerned of the pharma sector, but they are less dependent on domestic consumption. Pharma will continue to do well in foreseeable future.

ET Now: Do you like anything out of the metal space?

Vijai Mantri: No, we are underweight on the metal sector because we are not yet very confident that the demand will be consistent and robust. A lot of metal stocks have gone up because a lot of short covering has happened, but we have not met up our mind yet that metal will stay here and performance will continue. So, we remain underweight on the metal right now.