Buy Glenmark Pharma; like Lupin, Dr Reddy's Lab: Abhishek Sharma

Abhishek Sharma, Pharma Analyst at IIFL told CNBC-TV18, "We have a buy rating on Glenmark Pharma and a couple of other midcap stocks. What has essentially happened is that the Food and Drug Administration (FDA) warning letters to some of the companies served as a wake-up call and people were forced to look at the larger sector. Essentially, wherever there were questions around growth, those kind of challenges have been put in the spot light and the sector has seen some decent amount of correction.""I like Lupin simply because it has not faced the kind of regulatory challenges that the other companies have had which basically means that there would be a continuity of the business as we go through the next 12 months or so, whereas other companies would essentially be spending more of their time around clearing the regulatory hurdles. So, that is one reason why I like Lupin. There is some earnings visibility over the next 12 months which again is going to support their performance over the next 12 months," he said. "In that pecking order, I like Dr Reddy's Labs, simply because it has corrected very sharply from its highs and I believe that a lot of negativity around the morning letter as well as the Venezuela risk has already been factored into the stock price. We do not still know what is the magnitude going to be like, especially around Dr Reddy's, in terms of how much time they are going to take to remedy their three facilities. Broadly, I think it is in the stock price, so that would be my second pick.""Sun Pharmaceutical Industries, I think has been pretty resilient at least in the last two months or so. It started at around Rs 730 odd, it is at Rs 780-790 levels today. So, in effect, people are after the warning letter came out for the Halol facility, the stock has actually moved up. Some of the concerns have been assuaged. But, having said that, I believe that the stock is expensive and that is why I would put it as third in my pecking order amongst the largecaps."At 13:03 hrs Glenmark Pharma was quoting at Rs 784.55, down Rs 45.15, or 5.44 percent. It has touched an intraday high of Rs 830.00 and an intraday low of Rs 781.90.