So, they can become a viable alternate source which was not there for the last four-five years. In pharma, the major overhang in the last two-three years was the FDA problems. Most of these companies' facilities were facing some or the other problem with the USFDA. One unintended Covid repercussion was at least for the next few months, that adversity is out because they cannot come here and do the inspection. Today there is some news that they have also said that whatever is pending, they can do it on online kind of things so they do not have to come back here and visit their plants. To some extent, that uncertainty or overhang is taken care of for some months, Now should you take that as a long term thing? Then should you invest for 2-3 years? Definitely not. The FDA regulatory overhang will remain but you have to live with it. The good part is in the last three-four years, most of these companies have learnt to understand that and they have improved their working much more than was required.
We already own the largest company in the sector in our portfolio and we do not intend to increase allocation towards the sector. We feel that if this unlock trade happens and after this lockdown, the capacity expansion will be the last thing to happen. Nobody is looking at going for new plants and so you will get these stocks at much better valuation and even if you buy it over a period of time, there is no hurry to buy them. We are staying away from them. The Street seems rather divided when it comes to SBI. Which side of the fence are you on when it comes to SBI? We are out of SBI stock and we are out of the all banking stocks. We feel that only after the final impact of moratoriums show up in balance sheets, then only we will come to know what has been the real impact of Covid. Till that time, it is all guess work. As to making a case for buying this stock, they were there at Rs 150 and they will probably be justified at Rs 350 also. The issue is that the stock has not performed. The bank has always had some or the other problem.