Fund managers take value calls on pharma

Sun Pharma, Dr Reddy's, Aurobindo among top picks

The beaten-down pharmaceutical sector is finding favour among mutual fund (MF) managers, with Sun Pharmaceutical, Dr Reddy's Laboratories and Aurobindo Pharma emerging as top bets.

Fund managers say pharma stocks are “value buys” and could do well over the next 12 to 24 months. In August and September, they'd invested Rs 2,200 crore in the three stocks. Sun Pharmaceutical alone cornered a little over Rs 900 crore and Dr Reddy took away a little over Rs 800 crore. The three pharma companies scrips have been in fund managers’ top 20 most bought stocks in these two months.

“It’s difficult to