Both in the pharma and specialty chemicals spaces, there are companies which are attractively valued at this time with fairly strong fundamentals, Prashant Khemka, founder of White Oak Capital, said in an interview with Moneycontrol on September 13.
The market expert is bullish on the pharmaceutical space despite it not being a market favourite due to some companies’ attractive valuations.
“Post Covid-19, there was some euphoria for pharmaceutical stocks as people believed for a while that consumption of pharmaceuticals would go a post pandemic, but the opposite has been happening for almost three years now,” said Khemka.
However, the veteran investor sees some stocks in the given sector that have done much better. Khemka likes a few companies not just in the pharmaceutical sector but in the healthcare sector as a whole.
“Our team likes and holds several stocks in the broader healthcare space as we believe the fundamentals relative to other segments are strong and portray profitable business growth,” he said.
As of September 13, the nifty pharma index closed nearly a percent higher at 15,448.95 points. The index has delivered a 33 percent return over the past six months and 21.82 percent return over the past year.
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Similarly in the specialty chemicals space, despite some softness in global agrochemicals demand, the veteran investor remains bullish. However, Khemka advised investors to carefully pick companies.
“It is hard to generalise. Just like the pharmaceuticals, even in these spaces, there are several companies which are set for the long run way of profitable business growth, despite the poor performance of the sector. One must carefully pick these stocks,” he said.
The market expert explained that these stocks shall experience growth by the virtue of the segment that they are in, and the markets that they are tering to over the longer term.
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