Siddhartha Khemka on why Bajaj Finance saw a sell-off post results

economictimes.indiatimes.com:

Siddhartha Khemka, Head-Retail Research, MOFSL, says Overall, the numbers are in line with our expectations. Today's reaction is a bit of a sell-on-news kind of thing but we have a very positive view on Bajaj Finance, given the strong growth trajectory that they have been able to maintain, plus the diversification that they are now doing in the financing business, which should help them scale greater heights.What is your view on the pharma sector and Cipla in particular?For the healthcare space, even FY23 was a weak period.

We are expecting some improvement from the healthcare space with a sales growth of about 14% and PAT growth of about 13%. We are already seeing some of the pharma names reporting improved numbers a), on the back of improved demand both globally as well as in the domestic market, and b), and more importantly, with realizations now stabilising, the cost pressures are coming down.

The biggest overhang that we see is the regulatory overhang, which had eased off in between, but is coming back again. Some of the pharma names have started getting US FDA observations which delay and impact growth per se.

But overall things are looking better for pharma names. Some of the names have already moved up and valuations are now closer to the fair zone.

Still, in terms of the preferred players, we prefer some of the global exposed names like Sun Pharma, which has much better product global as well as domestic footprint.Do you have a view on L&T? Also why are Bajaj Finance stock seeing a sell-off?Bajaj Finance results have been more or less in line with the expectation and we are seeing the kind of reaction from some of the companies after the results which are in line. So it is mostly like a sell-on-news phenomenon.