Sanjiv Bhasin on why pharma is better than IT to play a weak rupee & his dark horse pick

economictimes.indiatimes.com:

Sanjiv Bhasin, Director, IIFL Securities, says “Lupin is my dark horse play. The stock has given a smart run up, but I still think Lupin is headed higher. You can add a basket of maybe Cipla and given that it is a takeover target, given a Cipla, Dr Reddy and Sun Pharma. Divi’s yes, on decline would be a buy because in contract farming in the API distribution, they are one of the largest players.”

Let us begin by discussing the pharma sector. The earnings this time have managed to show an improvement with the exception of Divi’s which of course was a big miss on the margin front. The commentary is something that the Street likes. Even Gland after many quarters has managed to deliver an okay set. Which are the stocks that you like?
You are right, Divi’s did disappoint but the management sounded very confident on the second half and that is the commentary from a lot of players on the second half of the calendar year and that I think is going to be instrumental. In pharma, we have seen blockbuster numbers from Cipla, Sun Pharma and Dr Reddy. The dark horse play which will come out with superb numbers is Lupin.

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Lupin has undergone a lot of sea change in the last two years. Their generic pricing, their distribution and their new product launches are very strong. Lupin is my dark horse play. The stock has given a smart run up, but I still think Lupin is headed higher. You can add a basket of maybe Cipla and given that it is a takeover target, given a Cipla, Dr Reddy and Sun