Buy Strides Arcolab at Rs 800: Rajesh Agarwal

Rajesh Agarwal, Head of Research at Eastern Financiers Limited told CNBC-TV18, "Strides Arcolab can touch around Rs 1,200 in the next few months. Considering the fact that they have sold one of their units to Mylan at USD 1.6 billion and there is strong buzz in the market. Even the management has said that they are going to distribute a hefty dividend, although the amount has not been disclosed but market expects that to be in the range of Rs 500-700. If that comes through that would be a big positive booster for this stock."

"Considering the fact that the market cap is only Rs 5,000 crore and the debt is around Rs 1,200 crore and around 60 percent of the business is being sold at USD 1.6 billion, so it is a win-win situation for existing shareholders and even if somebody wants to buy, one can buy on corrections to around Rs 800 odd levels,” he adds." Disclosure: I do not have personal holdings in the above stock but may have recommended them to clients.