Bino Pathiparampil, Head of Research at Elara Securities (India), said, “Indian pharma companies are, in general, net exporters, especially in the larger pharma companies, which have a significant part of their revenues coming from foreign geographies. All of them are going to benefit significantly from the sharply depreciated rupee.”
With the rupee weakening not just against the US dollar but also several emerging market currencies, export-focused drugmakers stand to benefit through better realisations and margin expansion.
Beyond pharmaceuticals, valuations in the diagnostics space have also corrected meaningfully after a strong run-up earlier. Pathiparampil sees the sector becoming attractive again at current levels and prefers Dr Lal PathLabs
among larger players due to its leadership position and operational consistency.
The hospital sector, however, remains in a transition phase. After several years of strong growth supported by rising healthcare demand and insurance penetration post-pandemic, expectations had moved ahead of fundamentals.
While stock prices have corrected and valuations are easing, Pathiparampil believes investors should wait for clearer signs of earnings stability over the next few quarters before turning more positive.
For the entire discussion, watch the accompanying video
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