The US stance on visas and pricing has added uncertainty for Indian drug exporters. He noted that while recent remarks target speciality exports, pressure could extend to generics. “If that happens, then obviously they will tell the generic pharma companies to take some part of the pressure,” he said. He added that market nervousness reflects this unpredictability.
Also Read | Wockhardt says US tariffs won’t derail plans for antibiotic ZaynichUS President Donald Trump announced a 100% tariff on imported branded and patented drugs, effective October 1. Companies with existing US plants, those building plants, or those that have started construction will be exempt from the tariff.
Parekh said his earlier overweight call on autos delivered returns through Maruti and Mahindra and Mahindra (M&M). However, he believes valuations have now risen too far. “The valuation re-rating has significantly moved up from 16 times to 18, 20 times. So they’re not cheap now,” he explained. He still holds Maruti but is not adding. His firm exited Tata Motors but continues to back Samvardhana Motherson for its expansion plans.Also Read | Pharma stocks led by Natco, Wockhardt fall up to 5% after US tariffs on generic, patented drugs
In terms of IT, he said that the fund remains underweight IT after booking profits in Persistent Systems and Coforge. Infosys is the only significant holding. He added that new-age digital stocks like Paytm and Delhivery appear too expensive.
Parekh described Bharti Airtel as a long-term “structural play.” He said, “Clearly 60% of the increase in average revenue per user (ARPU) is falling on the bottom line.” He also favours Indus Towers, citing its diversification, solarisation strategy and low valuations.
For the full interview, watch the accompanying video
Catch all the latest updates from the stock market here
