New Delhi, Feb. 27 -- In light of uncertainties surrounding US tariffs on pharmaceuticals, Kotak Institutional Equities noted in a recent report that the most likely scenario (for both companies and investors) is that high tariffs (above 10%) are improbable as they would be unfeasible. However, in a worst-case scenario involving substantial tariffs, companies might have to streamline their US operations (potentially exiting entirely) after exploring other options like passing the increased costs onto US consumers.

Maintaining their base case, Kotak has reaffirmed its optimistic view on the sector and their preferred companies include Sun Pharmaceuticals, Cipla, Lupin, J.B. Chemicals and Pharmaceuticals, and Emcure Pharmaceuticals.

The b...