Pramod Amthe is selective in midcaps; betting on 4 pharma stocks

economictimes.indiatimes.com:

Pramod Amthe, Head of Institutional Equity Research, InCred Capital, says “in recent times, private banks have been raising deposit rates to mobilise deposits which can be a pressure on NIM in the short term. So, the earlier sign to look at is some stability in deposit rates or the easing of deposit rates, so the cost of funds can be relatively favourable for the private banks. Till then, the PSU flavour may remain for some time to come.” I want to start by talking about the pharma pack as a whole, that is the defensive side. Everyone is looking at that as well. A lot of moves came in from Sun Pharma's side. On the smaller side, we have Orchid Pharma, which is seeing a move as well. How are you viewing pharma as a pack and is there anything specific that you are finding attractive?
Pramod Amthe: If you look at the recent trends, the pricing erosion in the US seems to be stabilising. Shortages are happening and hence pricing comfort is coming back. The better way to play there is Sun Pharma and Aurobindo which we like. The other trend is domestic outlook for the growth for pharma seems better for the second half (H2) as compared to the first half (H1). The proxy there which we are trying to play is Torrent and Ajanta.

Those are the two names which we are looking at. So, clearly the catch-up is happening for pharma as the overall environment on these two trends seems positive. We are seeing a couple of upgrades except for Cipla where we have seen a downgrade in ratings. The other four names which I mentioned would be