D-Street Talk podcast | Pharma earnings to double in 4-5 years says fund manager with AUM of over Rs 20,000 cr

Pharma was already in a bull market and COVID just accelerated the pace of the bull run, and the momentum is likely to continue for few decades, says Sailesh Raj Bhan, Deputy CIO-Equity, Nippon India Mutual Fund in ‘D-Street Talk’ podcast with Moneycontrol.

Bhan who manages an Asset under Management (AUM) of more than Rs 21,000 crores said that pharma sectors was seeing improvement in earnings for the last 12 months. The earnings trajectory improved in the last 3-4 quarters.

Indian came in the limelight in terms of becoming a major supplier of drugs amid COVID. This was the sector that was least impacted by the pandemic.

All the above-given factors contributed to the rally. But, above all, Bhan is of the view that the improvement in the pharma sector in the last 4-5 months is also the function of improvement in the fundamentals of the companies.

This sector turned around after witnessing 4 difficult years, and that coincided with the attention in healthcare globally thanks to COVID. “I think this sector is of a fundamentally strong wicket with the potential of doubling of earnings in the next 4-5 year period that gives earnings visibility,” explains Bhan.

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