Aurobindo Pharma is a good stock to buy now

[Pee Vee]

Aspects such as increase in research and development expenditure, and acquisitions of assets in overseas markets are positive signs holding promise of growth. While Sun Pharmaceutical Industries is a preferred bet for its promising business model, Lupin and Aurobindo Pharma have promising pipelines with facilities that are clear of any regulatory clamps.

The top five pharma stocks have either depreciated or remained rangebound during this period. Their valuations are way off the highs of 2015, when the prospects of pharma companies were looking very bright (see the table). The limited choice among mainstream pharma companies has prompted investors to switch to firms such as Biocon (a biotech company) and Piramal Enterprises (which has a significant presence in real estate and financial services sectors), both of which have doubled on the bourses in the past one year.