Rupee fall to help pharma cos; top pick Lupin : JM Fin

JM Financial believes pharma companies are constructively positioned from a global perspective. Speaking to CNBC-TV18, Anmol Ganjoo, VP Institutional Equities at the brokerage firm, says currency depreciation will be supportive for the pharma sector’s earnings estimates. Among midcap stocks, Lupin remains his top pick on perfect execution track records. He also says, sectoral tailwinds will help Sun Pharma, though Ranbaxy benefits are over-rated and medicines super-priced. He says that Glenmark will benefit from its pipeline visibility.Divi's Lab, according to him faces an upside risk for FY17 on currency depreciation and traction in custom synthesis business and estimated stock earnings per share (EPS) at Rs 97.Among large caps, he says Cipla will be the best earnings growth company. It is the only large cap with 40-45 percent domestic exposure and faces no downside risk due to improved operational costs, he adds.Meanwhile, Dr. Reddy’s continues to be a structurally long-term pick, he says, adding, the stock has a great valuation discount as its earnings estimates and R&D pipeline is positive.