Stay invested in Aurobindo Pharma: Deven Choksey

In a chat with ET Now, Deven Choksey, MD, KR Choksey Securities, talks about Aurobindo Pharma.

ET Now: Why is the world now suddenly bullish on Aurobindo Pharma?

Deven Choksey: The current acquisition that they have done in the Eurozone, probably even though it is not profitable acquisition, they are acquiring this through the cash available in the balance sheet with them. They are not going to bleed further, that is the theory going. Probably going forward, one could expect better performance coming out of that particular acquisition that they have done but you are so right that many a times in our market, we start giving the disproportionate favour to an individual company.

On other day a few months back, it was not accepted in the marketplace and today through this inorganic growth route, it has been accepted. I am not totally sure as to how one would justify this kind of a move in the market but as far as the positioning goes, we basically believe in staying with some of the proven management, proven frontline businesses, companies like Glenmark Pharma, companies like Biocon, even Cipla, there is seen a better amount of growth over a period of time. So we like those companies. So stay invested with those companies vis-à-vis some of the other midsize.