DSP Healthcare Fund holds 44.5% in Indian smallcaps as manager bets on CDMO growth
DSP Mutual Fund allocates nearly half its portfolio to Indian small-cap stocks, targeting contract drug manufacturing firms expected to benefit from reduced global reliance on China.
Chirag Dagli, the fund manager for the Rs 3,800 crore DSP Healthcare Fund, has allocated approximately 44.5% of assets to domestic small-cap companies at the end of August. The fund owns around 9.2% in global equities as well. Its top five holdings include IPCA Labs, Sun Pharma, Sai Life, Cipla, and Apollo Hospitals. Dagli expects Contract Development and Manufacturing Organizations (CDMO) to generate the sector's fastest earnings growth over the next five years. He cites global pharmaceutical companies seeking to reduce dependence on China as a key driver for this sector. The fund added newer businesses such as hospital expansion and hybrid diagnostics models to its strategy to find companies capable of sustaining long-term growth.
