Ravindra Nath

Vice-president of institutional equity,

Asit C Mehta Investment Interrmediates

We are positive on the

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pharmaceutical sector. The counter has not given returns in line with expectations for the past two three years. Now, with consolidation taking place in the sector, we expect pharma stocks to see buying interest.

The September quarter results have been healthy for most of the pharma companies. There may, however, be concerns over exchange rates. Rupee is appreciating against dollar, and therefore, pharma companies, which generate a major proportion of their revenues from overseas markets, may see some pressure. For instance, Ranbaxy recently posted firm bottom line largely on account of forex gains, which may not continue for long. Other concerns include approvals from the USFDA. But, Indian pharma companies are cooperating to solve the issue. We maintain buy on pharmaceutical counter.