Kotak Institutional Favors Contract Manufacturing, Hospitals in Pharma Outlook

• Kotak Institutional Equities prefers CRDMOs, domestic formulations, and hospitals for better medium-term visibility in pharma and healthcare.
• Hospitals are highlighted as a standout within healthcare services over a three-to-five-year horizon, surpassing diagnostics.
• Despite recent corrections, Kotak remains positive on the structural opportunity in CRDMOs, with no negative developments altering the long-term thesis.
• Sai Life Sciences is preferred in the near term within CRDMOs, while Syngene and Piramal Pharma are favored over a longer three-to-four-year period.
• In US generics, Sun Pharma leads Kotak's large-cap preference, followed by Lupin and Cipla, with a focus on specialty and innovation.