Mayuresh Joshi Shares His Top Picks in Pharma and Oil & Gas Sectors

Mayuresh Joshi, Head of Equity at Marketsmith India, has shared his top picks in the pharmaceutical and oil & gas sectors.

Pharma Sector

Joshi favors Morepen Labs and Natco Pharma. He also holds Cipla and Dr. Reddy’s in his global portfolios.

Natco Pharma: Joshi likes Natco for its strong performance in the branded generics segment and its promising pipeline of FDA and ANDA approvals. These new launches are expected to boost Natco’s top line and maintain high profit margins.

Morepen Labs: In the mid-cap pharma space, Morepen Labs stands out. Joshi believes the company’s medical product division, especially glucometers and BP monitors, will continue to grow. The management is optimistic about double-digit earnings growth, thanks to strong sales of medical products and APIs.

Oil & Gas Sector

Joshi is positive about the oil and gas sector, particularly upstream companies like ONGC and Oil India. He notes that India has substantial oil and gas reserves that are largely untapped. The government plans to increase investment in exploration and production, which should benefit these companies.

ONGC and Oil India: Joshi highlights that ONGC’s oil production is expected to reach new highs, with significant potential from the OVL asset. For downstream companies, stable crude prices and potential recovery in the downstream business, partly driven by China, are positive signs.

Selan Exploration: Outside of ONGC, Joshi is interested in Selan Exploration. The company’s fields, like Bakrol and Karjisan, have significant potential for increased production. Selan’s merger with Antelopus should further strengthen its cash flow and dividend yield.

In summary, Joshi remains optimistic about both the pharma and oil & gas sectors, with strong picks in each for continued growth and profitability.