Re-rating story will continue in Wockhardt: Pathiparampil

Bino Pathiparampil of IIFL believes the re-rating story will continue in Wockhardt. He expects some good returns going forward.

Pathiparampil told CNBC-TV18, “Wockhardt over the last 2-3 years have come out of its major issues which were related to forex derivatives, related to poor business performance in some businesses in Europe etc. In the US they have done exceedingly well. I believe this performance is going to continue and the recent scare related to FDA issue was totally unwarranted. It will not be that material even if the worst outcome comes out of that. And even if in the near-term if there is a warning letter that gets issued on the facility that does not mean they have to stop the business.”
“It is just that new approvals will not come through for sometime. But that will not impact the continuing performance of the company. The stock’s rerating is still not completely done versus peers at 18-25 times, this stock is still at 12-14 times one year forward. So I believe this re-rating story will continue in that name and I look forward to some good returns from that stock,” Pathiparampil added.