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

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?