Despite the run-up, should you buy Safari or Gland Pharma? Devang Mehta answers

economictimes.indiatimes.com:

Devang Mehta, Director-Equity Advisory, Spark Private Wealth, says “after a long hibernation, pharma has come out of its orbit. Probably, there is a lot more upside. Of course, one needs to be a little more specific in terms of whether it is US generic pharma or an MNC pharma or for that matter even a path lab but most of the businesses look interesting in terms of valuations.” Is there a bit of a chink in the armour of the entire thesis that the peak of the rate cycle is already over, inflation is under control? Or do you think the RBI step is very transient?It seems more like a transitory measure, Yesterday’s policy statement post the RBI policy also did not indicate any major concerns on the food inflation front.

Of course, seasonality comes to the fore when we discuss agri commodities like sugar or spices and wheat and food inflation. Most of these commodities, at least twice in a year, behave a little abnormally. My sense is that this seems more transitory.

Yes, it raises a little bit of this word on inflation where again rates seem to be status quo for some time. But yes, it is a little bit of risk to the theory that the interest rates have peaked out. So, probably it raises a little bit of concern for rate sensitives as well.But what about the commodity sensitives? I am talking about the FMCG player, the manufacturing names like Prataap, Britannia, Mrs Bector, etc. Do you think it is going to be a margin expansion play for them? That also is at risk because in this quarter as well, there was no blowout number from any FMCG company.Yes.