“Tariff is the biggest uncertainty. Apart from Sun Pharma, most companies are not affected by the current US tariff regime. Even Sun will dodge the bullet with recent developments. However, I am cautious about CDMO players. Multinationals may invest in US facilities, which could reduce order flow to CDMOs. It’s not a primary impact yet, but secondary effects may emerge,” Bandyopadhyay said in an interview to ET Now.
He recommended focusing on domestic-focused companies. “Domestic pharma is growing at about 25% CAGR. Companies with limited US exposure are a better bet. We have been positive on Mankind Pharma for a long time—they derive 95% of their business from domestic sales,” he added.
On the retail front, value retailers are expected to benefit from incremental income and festive demand. Bandyopadhyay said, “Incremental income in the hands of the common man will help V-Mart, Style Baazar, and other value retailers. The festive season continues till December, and with improved rural and urban income, Q3 performance should be strong.”
He noted that value retailers may see sustained gains unless there are unexpected weather disruptions or economic setbacks. With GST benefits and growing consumer spending, the segment looks promising for the remainder of the year.
Overall, Bandyopadhyay’s outlook suggests cautious optimism: domestic pharma and value retailers offer safer growth avenues amid global uncertainties. While pharma faces potential secondary impacts from US tariffs, companies focused on India or non-US markets may continue to thrive. Similarly, value retailers stand to gain from rising disposable incomes and festive-season spending, making them attractive picks for investors looking for stability and steady growth in a volatile environment.
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