Pharma set for upside on tariff clarity; Lupin, RBL Bank among top picks: Rahul Shah – News Air Insight

The Indian pharma sector is poised for a strong comeback as clarity emerges around US tariff policies, according to Rahul Shah, Associate Vice President and Group Leader–Equity Advisory, Motilal Oswal Financial Services (MOFSL). Speaking to ET Now, Shah said any fresh developments on tariff rationalization could act as a key catalyst for the sector and drive earnings visibility for major drugmakers.

“We’ve been hearing a lot around tariff changes, and any concrete move will be a key catalyst not just for markets but especially for the pharma space. This sector is poised to do better with improved visibility on earnings,” Shah said.

Lupin emerges as top pharma pick

Highlighting stock-specific opportunities, Shah reaffirmed Lupin as one of MOFSL’s top picks within the pharma pack.

“Lupin remains one of our top bets given its strong product pipeline, consistent performance in the US markets — with 14 straight quarters of 20%+ growth — and attractive valuations,” he said.

He added that larger players like Sun Pharma, Dr. Reddy’s Laboratories, and Cipla are also expected to continue expanding in the US, potentially through new plant setups, to mitigate geopolitical risks and maintain supply chain stability under evolving trade dynamics.

“We’ll keep seeing new announcements and positive developments from these larger pharma players in the US,” Shah noted.

RBL Bank: Turnaround gathers pace

On the financial side, Shah pointed to RBL Bank as a compelling turnaround story, following Société Générale’s recent stake purchase through a block deal that lifted the stock 4–4.5% on Tuesday.“RBL Bank has faced multiple headwinds over the past few years, but the last few quarters have been encouraging. The balance sheet is improving, valuations remain reasonable around 1.2x book, and earnings growth looks sustainable,” Shah said.

He believes the entry of a global name like SocGen adds credibility and investor confidence to RBL’s transformation story.

“Despite the recent rally, there’s still room for another 15–18% upside from current levels,” Shah added, emphasizing the improving risk–reward balance.

Sector outlook

Pharma: Tailwinds from tariff clarity, strong US growth, and pipeline expansion.
Banking: RBL stands out as a mid-tier value play; broader BFSI outlook remains constructive.

As global trade dynamics evolve and domestic earnings momentum stays resilient, Shah expects selective sectoral plays — especially in pharma and mid-tier banks — to outperform in the next few quarters.