Stick to largecap pharma stocks: Hemindra Hazari

In an interview to ET Now, market expert Hemindra Hazari shares his view on pharmaceutical stocks.

ET Now: It is music to the ears to hear you sounding bullish on Pharma sector. Are you still betting on largecap pharma stocks or are there interesting midcap ideas as well that crop up every now and then?

Hemindra Hazari: There are interesting midcaps, but they are richly valued. I would prefer to go with largecap names. There have been good midcap companies like Natco Pharma, but their valuations have climb up quite significantly. This is a general trend across the board. This is because when economy slows down, the top lines of small and midcap companies squezze. We have already reading this trend in the RBI data. One has to be extremely particularly about midcaps in general.


ET Now: Does Aurobindo qualify in that list?

Hemindra Hazari: Aurobindo Pharma is in the pharma sector and among the pharma names, the drug maker is much better off than others.



ET Now: Broadly what is the view on pharma sector. The charts look very positive. What do you make of the moves that some of the stocks have shown? Any particular favourite?

Hemindra Hazari: Pharma sector derives a substantial proportion of its demand from exports, and, hence, despite slowdown in the domestic economy the sector is doing well. The market is factoring in the positives. You should just go for the big boys (largecap pharma stocks.) I believe one should stay invested in this particular space in trouble times.