Hold Lupin for long term: Devang Mehta

Mehta told CNBC-TV18, "Lupin is doing extremely well in the domestic market and branded formulations space. Also its Japanese acquisition is going to contribute around USD 60 million to the revenues from next year onwards. The company is also doing well on the US front, generic front also.”

He further added, “It was one of our preferred pick sometime back. Still we do suggest a hold for the stock though if one wants to buy more one can buy on dips but we suggest it as a strong hold, it is one of the best companies available in the pharma sector and at reasonable valuations. So Lupin is a clear-cut hold.”

“On a bounce may be around 5-10% returns if one gets in two months I think investor could exit and probably enter something like a Ranbaxy , which is currently available at a very good lower valuation and Ranbaxy is currently one of our favorite picks in the Pharma Sector. So if investor needs to book profits he could get out in 1-2 months period and switch into Ranbaxy.”

“But holding Lupin for the long run is also a good idea. We had a price target of Rs 510 which was earlier achieved and we still maintain that price target currently.”