Dilip Bhat positive on pharma sector

Dilip Bhat of Prabhudas Lilladher told CNBC-TV18, "The pharma names are getting challenged by the valuations at the moment. When we were having a more discussion the thing that was coming out is the generic companies like Teva Pharmaceutical Industries and all which are addressing same market as the leading Indian pharma companies, they are not even trading half of the valuations as what one of these companies are trading at. So, why should Indian pharma companies really trade so high? So, that challenge remain in my opinion not just for the pharma companies but for across all the front-line companies. But that is fair point that has to be taken. But having said that I think this US FDA thing is something which is really inspiring a lot of fear in the minds of the people which is where the valuations are really coming in to question time and again."He further added, "My take is that these US FDA observations are something which will make these front-line companies very strong, very solid and I think they will make them good in the long run. But the entire thing is that within this pharma space, I would still think of investing in the pharma space names like Aurobindo Pharma, something like Lupin and may be some pharma as something to give some kind of resilience on the downside and some of the midcap names like say Thyrocare which is more in the diagnostic sector. But I would still be positive on the sector largely because of the growth factor and also because of the profitabilities."