Healthcare and pharma stocks have delivered strong gains, supported by robust earnings growth, improving profitability, and favorable currency movements. While several hospital stocks have already reached valuation targets after a sharp rally, the broader healthcare sector continues to offer attractive long-term opportunities. According to Prateek Nigudkar, Senior Fund Manager, Shriram AMC, India's pharmaceutical industry remains a steady compounder, driven by double-digit domestic growth, rising demand for chronic therapies, and the emergence of new drug categories such as GLP-1 treatments. Despite concerns around US regulations and tariffs, Indian generic drug manufacturers continue to play a critical role in global healthcare. Nigudkar remains positive on pharma, hospitals, and diagnostics, while emphasizing a selective approach within the hospital space