Regulatory concerns weighing on largecap pharma stocks: Kunj Bansal

In a chat with ET Now, Kunj Bansal, ED & CIO, Centrum Wealth, shares his views on pharmaceutical stocks.

ET Now: Pharma is a pack which has seen contrasting fortunes. The largecap pharma stocks are getting beaten down, but the midcaps are not doing that badly. Natco Pharma, for example, has done very well. We have seen smallcaps such a sAnuh Pharma really rocking the charts. So there are some midcap pharma companies which are doing very well even if there is some pressure on largecaps. Do you guys at Centrum have a preference for any pharma name?
Kunj Bansal: Right now, I am not ready with any specific pharma name. But there are some companies that are in our buy list of recommendations. It is obvious that if largecap companies are going through regulatory pressures, the same applies to midcaps as well. But we have not seen as many cases in midcaps as we have seen in largecaps. So that is the reason that even as the space in general had been doing well in the last three years, the last few months have seen a flurry of activities from the USFDA, which has largely affected largecaps. There have been some other specific issues as well such as the impact of Ranbaxy acquisition on Sun Pharma.

That has not been the case with midcap pharma companies. And that is why we are seeing good performance coming from the midcap companies. In fact to add to the list, without any recommendations, is Alembic Pharma, Torrent Pharma amongst the midcap space, the other companies…