A few thoughts -
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In investment parlance, Diversification means allocating your investments in different asset classes like Direct Equity, Mutual Funds (both equity & debt), Bank FDs/PPF/Post office schemes, Gold (physical/ETF) etc etc. So the question itself is questionable
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Still, if you happen to be extremely positive on Pharma sector and want different flavors within this sector, I would suggest you to think on below broad ways-
a) Mid Cap vs Large Cap - understandably, the mid caps will grow faster and provide better returns in the longer term than the large caps
b) Pharma Exporters - Stocks like Granules, Shilpa export most of its products to western markets and are prone to inspections from various regulators like EMA, USFDA etc. Depending on the outcome of inspections from different regulators, the businesses may take wild swings.
c) Mix of Domestic & Export focus - Most of the Indian pharma players nowadays are focused on exports to the USA and has got big big expansion plans. Biggies like Sun Pharma, Lupin, Cipla and even mid caps like Alembic, Glenmark, Alkem etc have their legs firmly rooted in domestic markets as well as good exposure in exports. So its kind of mix or best of both the worlds.
d) Domestic oriented companies - Something like Eris Lifesciences which is completely focused on Indian market can be considered.
e) Indian subsidiaries of Pharma MNCs - There are some listed subsidiaries of Pharma MNCs like Pfizer, Merc, Sanofi etc. These have got specialization in one or more therapeutic areas owing to its strong parentage. But the presence of its parent in another countries (or lets say across the world) makes them confined to the Indian market only.
So, apart from Pharma, suggest you to consider investing in other diverse sectors as well…Happy investing !