Macquarie has turned selectively bullish on the healthcare sector following the recent correction in Indian pharma formulation stocks, driven in part by concerns over global tariff threats. The brokerage believes the pullback offers a buying opportunity in quality names, identifying Sun Pharma and Lupin as its top picks in the space.
In its latest sector note, Macquarie emphasized that contract development and manufacturing (CDMO) companies continue to benefit from secular demand and regulatory tailwinds, with Divi’s Laboratories and Cohance Lifesciences emerging as preferred names in that segment.
On the other hand, Macquarie remains bearish on the hospital sector, noting that a majority of listed hospital stocks have underperformed broader market indices over the last year. It has issued sell ratings on Apollo Hospitals and Max Healthcare, citing valuation concerns and limited near-term triggers.
The brokerage’s strategy for the sector is now tilted toward formulation plays and specialty manufacturing leaders, as opposed to pure-play hospital operators, especially amid regulatory flux and mixed investor sentiment.
Disclaimer: This article is for informational purposes only and is based solely on brokerage reports and publicly available data. It does not constitute investment advice or a recommendation to buy or sell any securities. Readers are advised to consult a certified financial advisor before making any investment decisions.
