What to buy in pharma stocks? Rahul Shah answers

One is seeing buying in pharma of late. There have been fundamental triggers leading up to that but as a house call, do you have any pharma buys?
The last two quarters’ numbers for most of the pharma companies have been mixed. Sun Pharma remains better off from the last three-four quarters and their numbers have been quite good. I feel that all specialty businesses are firing up in Sun Pharma and the US business also is better vis-à-vis competitors. So, Sun Pharma remains the top bet in the entire pharma basket.

Also, I feel that in the pharma pack, one should look at Ciplas of the world. A lot of pharma stocks are bottoming out but if I have to pick one, I think Sun Pharma will continue to outperform at current levels.

Another stock, which is worth discussing or worth revisiting is Biocon. Last mover, late bloomer, but it shot up. What is your view on Biocon as a stock independently?
The stock has done nothing in the last two and a half years. Pre-Covid most of the pharma stocks rallied and the same was the case with Biocon and then it has done nothing in the last two years. So if I have to look at in terms of market cap, the stocks look cheap but in terms of valuation, it looks fully valued at current levels as well. I do not see any major upside happening in Biocon. So let the company come out with the numbers and perform in a couple of quarters. Post that, we can review it but it is fully valued at current levels.