Bafna Pharma can go upto Rs 50 on listing

CNBC-TV18's Executive Editor, Udayan Mukherjee - Bafna Pharmaceuticals is a small company. It was a well priced issue which is why it saw some appetite. At issue price of Rs 40 assuming that they do Rs 6 per share this year it is trading at under 7 PE. At that level you built in some cushion of safety. Is it the great new pharmaceutical company from India? Not really.

It is primarily an Amoxicillin exporter to Sri Lanka, getting into contract manufacturing on the Simvastatin front. But it is too small with Rs 60 crore revenues. Things can go right or wrong but the price is Rs 40 so I am sure that would be an open invitation for a lot of the punters to go to run amuck this morning.

That aside it has left a bit on the table so maybe can inch up to Rs 50 odd but not for serious investors. There are better things in the listed pharmaceutical space.