Devang Mehta on what themes work best for him in pharma space
Devang Mehta, Director — Equity Advisory, Spark Private Wealth, says “there are a couple of themes in the pharma space where we have been bullish through the last 6-9 months. These have been MNC pharma companies like Abbot India. These companies probably command a huge market share. These companies are sort of cash cows and work with a negative working capital cycle. These companies never get into fracas with USFDA. Most of these companies come up with not only a great set of earnings but also the margins are very impressive. The other stream of business which we like is the CRAM space where something like a Syngine operates.”
What are your thoughts on Polycab or if you are unable to talk about exactly on Polycab, some of these large wires and cable companies who in the last 5-7 years, have shown earnings growth and have made a place for themselves in this sector?
Devang Mehta: We have been liking the space so, particularly would not like to name any stock as such. But with the plethora of businesses in the wire and cable space, these companies have developed themselves from a normal cable and wire company which was a commoditized type of business, to branded businesses with pricing power. Some of these brands are very well-known in the market for Havells, for Polycab, for RR Kabel.
Unlock Leadership Excellence with a Range of CXO Courses
Offering CollegeCourseWebsiteIndian School of BusinessISB Chief Digital OfficerVisitIIM KozhikodeIIMK Chief Product Officer ProgrammeVisitIIM LucknowIIML Chief Executive Officer ProgrammeVisit
In most of these companies, people have the choice to buy into products which are available. Most of these companies are called fast-moving electrical goods companies (FMEG) like the FMCG
