Why Elara Securities bets on these stocks and sectors

The drug is used to treat dry eye disease. Phase 4 shows sustained improvement in dry eye disease in patients who switched from Restasis.

Pathiparampil was not much worried about the nine USFDA observations on Dr Reddy’s Laboratories (DRL) biological facility.

“DRL is still in the early phases of putting in place their biologics manufacturing for related markets. So a few observations from USFDA is to be expected in the early stages and as long as these are not major, serious issues, I would think that these can be sorted out as we go along over the next few months,” he said.

He believes the generic Xywav oral solution for which Lupin received a tentative USFDA nod could prove to be a very good product for Lupin. However, he doesn't expect this product to hit the market in the next couple of years. "It is a slightly medium-term opportunity,” he said

Xywav is calcium, magnesium, potassium, and sodium oxybates oral solution.

Pathiparampil also shared his views on the financial space. He believes most of the large banks will start seeing some increasing cost of funds going ahead and they will be a little weak in the near term.

“We are expecting some new compression in the banking space and this will be more pronounced in the larger banks which is why we are expecting the larger banks to be a little weak in the near term,” he explained.

He remains positive on the non-banking financial companies (NBFCs) space where he has seen continued growth momentum, which helps the companies absorb some of the increased cost of funds. Bajaj Finance is a preferred pick.

From the power sector, he likes PFC and REC.

From the real estate development sector, he is positive on Mahindra Lifespace, Macrotech Developers, and Brigade Enterprises.