Ipca Labs and Lupin are top picks in pharma space, says Rajesh Agarwal, Head of Research, Eastern Financiers.
Agarwal told CNBC-TV18, "Rupee issue can be a great trigger for this stocks but I fear that most of the pharma companies might be having some dollar hedging and that won't go well with them. But going by the kind of uncertainties we are facing in the market at this point of time and whole lot of negative environment, I think pharma can be a good bet. Some of them can give really surprising results, not only on the balance sheet or bottomline front but also on the market cap front."
He further added, "One can have a look at some of the mdicap pharma names such as Lupin, IPCA Labs which I think can out perform the larger names like Dr Reddys or Ranbaxy . Yes there are higher risks in midcap pharma but then you have got higher returns. So I think IPCA Labs or Lupin even Unichem looks better which today has seen some correction but I think after some downside from these current levels one could again buy these stocks."
