Positive on Torrent Pharma, Biocon & Dr Reddy's: Prashasta Seth

In a chat with ET Now, Prashasta Seth, Senior Fund Manager, IIFL Wealth, shares his views about the pharma stocks.

ET Now: What is the trigger for Biocon surely they came out with good set of numbers but insulin prices are volatile and we do not know what will happen to Clinigene and Syngene?

Prashasta Seth: Biocon, I essentially look at it in a slightly different way. For me, the valuations are attractive, the valuations are not cheap, not expensive. There is a huge amount of option value in the Biosimilar space so if biosimilar space takes up as the branded generic space then there are only two or three companies in India which have the capability to benefit from that particular opportunities which would be Dr Reddy’s, Biocon, would be the leader in that pack. So, I am getting optionality in terms of Biosimilar business at practically zero cost. I look at it so if the biosimilars opportunity plays out we believe that you could essentially see a big up move in the stock. In terms of Torrent Pharma business is doing well, they are growing well both in India, their US business is essentially can see a very significant jump. If you compare it with names like Ipca it is trading at a substantial discount to them and earnings growth could easily be 20% plus, valuations attractive and that is the reason we like this stock, we have been holding it for quite sometime and we continue to hold it.