Sun Pharma, Exide Industries top picks: Gandotra

Sun Pharma and Exide Industries are the top picks. One may prefer buying auto ancillaries over autos, says Pathik Gandotra, Dron Capital Advisors.

Gandotra told CNBC-TV18, “The pharma companies at the top which is Sun Pharma, those are expensive but then there are obviously big opportunities that the space is presenting for generics in the next 2-3 years in both orals and injectables. And in that space there will still be a rerating of the stocks in the middle to lower end of the market cap spectrum and where serious returns can be made.”
He further added, “I would prefer buying auto ancillaries and autos. So Exide Industries for example is a very good stock to own. We would be more bullish on auto ancillaries at this stage. Autos you are half way into the slowdown. So the slowdown is yet not over. Again once you are clear that interest rates are going to be falling is when one would start taking bets on auto. That time is coming but you are not there yet.”
“There was a correction in cement stocks post the mild correction, post the competitive commissions report. But I think the cement industry will do okay because housing activity has still not stopped. I think housing is an industry which is doing pretty well and so I would be bullish on cement."