Ranbaxy Labs, Dr Reddy Labs good bets: Vora

Ranbaxy Labs and Dr Reddys Labs are good bets in pharma space, says Amisha Vora, Prabhudas Lilladher.

Vora told CNBC-TV18, “The way overall economy and markets are placed it so appears that one by one a lot of sectors are in some or other trouble as also in terms of rupee there remains a risk of little depreciation. So pharma and IT will continue to be in favour, more so pharma because maybe next couple of years at least in terms of exports both to US as well as to non-US emerging countries the growth will be very good.”

She further added, “In terms of the new pharma policy domestically they could have some margin pressure, but otherwise overall as a sector between 15 to 18-20 percent kind of a growth is a possibility in pharma, which in current scene looks very good where even domestic consumption has started taking a bit of knock. In terms of our favorites, Sun Pharma somehow is like HDFC Bank. It is an all-weather friend and it continues to perform consistently. Beyond that we continue to like Ranbaxy Laboratories. That is what we have been recommending for a while. We think over two to two and a half year kind of horizon it can have a complete turnaround both in EBITDA margin as well as turnover composition. The other consistent player in large cap which we like is Dr Reddy Laboratories and in small cap something which we like is Ipca Laboratories.”