Deepak Shenoy, founder of capitalmind.in told CNBC-TV18, "Top midcap, largecap and smallcap indirectly related to pharma stocks have gone 2x-3x in the last year. Some of them have doubled in about 30 days or nearly doubled in 30 days like Natco Pharma. So in that context Glenmark Pharma would be an absolute buy because pharma is a darling of the stock market. They have just got a hike of FII limits to 49 percent, the chances are FIIs are just going to buy. Given the sentiment they might push it further. It might go way over-valued in comparison with fundamentals but that is what markets are for. They overvalue some stocks, they undervalue some others and it means that at this point Glenmark will have a very strong tailwind of buying from the FII limits and also from investor sentiment."
Having said that I don’t know anything particular about Glenmark Pharma that might change the USD 25 million hit that it will get but we don’t know if this is the only thing that is on the table or whether there will be more in store. So those are surprises we should look for and that applies to most of the pharma industry by itself," he said.
Dr Reddy's Laboratories has got 3 ANDAs filed, so they have got some action coming on that front. I am sure a lot of the pharma stocks will move in and we are invested in few pharma stock also. I think this industry itself is difficult to say don’t buy it right mow," he added.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
