Aashish Tater, Head of Research, Fort Share Broking advice traders to exit from Natco Pharma.
Tater told CNBC-TV18, “The idea here is that Natco Pharma has been an exit from our side in today’s trade and we recommended our clients also book out of something like Natco Pharma because we feel the value should be around 3.5 times market cap to sales which the stock is right now trading at. So, it’s trading roughly around its fair value, so no use of holding the stock right now.”
He further added, “We have suggested the stock as an exit. There are market rumors that other players are picking up stake into Natco Pharma, but the numbers that we are looking for even for next year, we feel the stock is trading at roughly higher premium valuations than what it used to deserve. We feel this particular stock in the short span should not cross under circumstances above Rs 440-460 range. So, just 4-7% upside, but there is an equal potential risk of the stock retesting Rs 340-345 odd levels where we are really comfortable in buying the stock."
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Dont see mkt going anywhere now; like Bharat Forge: Dipen