SP Tulsian cautions investors to stay away from the pharma sector, as a lot f regulatory concerns still remain.
A lot of market experts from Ashwani Gujral to SP Tulsian are cautioning investors to stay away from the pharma sector, in light of the ongoing USFDA issue. In conversation with CNBC- TV 18, the market veteran SP Tulsian said that it’s best to avoid the stocks from the sector as concerns still remain. He added that some investors may be compulsive buyers or may take exposure to the sector to balance their portfolio. For such investors, the market expert suggested Aurobindo pharma, Divi’s lab and Glenmark Pharma stocks. He believed that Divi’s lab is a good buy as the stock has seen a sharp correction, after it posted below par Q1 corporate earnings. The stock was trading at Rs 665, down by more than 1% from the previous close. According to Tulsian, Aurobindo pharma is in a very good space with expected EPS of 48/49. On Tuesday morning the the stock was trading at Rs 738 on NSE, up by more than 2.5% from Monday’s close. The market ace suggested to hold on to Glenmark Pharma, as the company had posted excellent Q1 numbers. The company’s profit has surged by 47% and stood at Rs 333 crores. “Despite challenges in India and US markets, the performance of our businesses have been good,” said Glenn Saldanha, Chairman and MD of Glenmark. The stock was trading at Rs 702 on NSE on Tuesday morning. “ Have these stocks only if you have a minimum of 1 year timeline”, cautioned the expert.
From the banking space, Tulsian picked Yes bank, Kotak Mahindra bank and RBL. The fundamental analyst pointed out that Kotak is the largest among the three banks mentioned. He believed that Kotak Mahindra bank has a lot of positives in terms of core business growth and asset quality. According to him, it’s an excellent stock and should be on the investor’s radar. The share was trading at Rs 1,016 on NSE, on Tuesday afternoon.