These two stocks can act as Rahul Dravid of your portfolio: Gautam Shah
«Even if the markets go through a bit of a correction, pharma and FMCG will stand out. So, almost 14% to 15% of your portfolio at this point of time should be in pharma,» says Gautam Shah, Goldilocks Premium Research.
What would you like to get into in pharma? What are you riding there?
Gautam Shah: Well, pharma has been a brilliant story for the last one year. For the last four months, it has actually got into a consolidation patch. Now it saw a breakout last week and we like stocks like Dr Reddy's which could be setting up for possibly a Rs 1,000 rally from here. Sun Pharma has been a structural story for a couple of years now. Cipla has been doing well. Stocks like Divi’s Lab and Laurus Lab have completed their underperformance, so they are also likely to move up. So, this entire pack has a lot more upside and we have seen what Wockhardt Pharma and Zydus Life have done in the recent past. And these are in some sense low beta or negative beta. So, even if the markets go through a bit of a correction, pharma and FMCG will stand out. So, almost 14% to 15% of your portfolio at this point of time should be in pharma.
Tell me, what is it that you foresee on the charts of the oil and gas plays because ONGC, MGL, IGL, one is seeing quite a bit of traction and sporadic moves in this entire space.
Gautam Shah: See, there are three things here. Fundamentally, they are not very expensive. Number two, they have been underperformers for a decade now, so they are coming out of a decade of underperformance and they have only
