Prefer Glenmark on strong molecule pipeline; Sun Pharma a value arbitrage opportunity: Prakash Diwan

In a chat with ET Now, Prakash Diwan, Director, Altamount Capital, shares his top picks from the pharmaceutical space.

ET Now: Sun Pharmaceuticals has come off by about 20-21 per cent from its 52-week high level. Is it still attractive or would you look for new avenues?

Prakash Diwan: It is (still attractive). Glenmark too got a positive run, but the recent bouts of profit taking hurt the stock price. I believe that Glenmark is extremely promising at present valuations, given their pipeline of molecules.

You can look at Sun Pharma as more from a value-arbitrage opportunity. There are certain smaller names as well, which would start bouncing back. Suven Life Sciences has been on our coverage for a while now. It went all the way up, but it has come down Rs 60 levels. Nothing has changed on the fundamental side; there were no adverse news flow.

ET Now: But, there has been no good news as well.

Prakash Diwan: The good news was there and was doing well. Operating leverage was improving, ROEs are improving. Hence, it is time that people start realising and there are lots of midcaps other than pharma and IT, where this trend is emerging.