Mayuresh Joshi, VP Institution of Angel Broking told CNBC-TV18, "What has typically happened is the USFDA letter has followed the import alert ban on Wockhardt. This typically means that the management was expecting a revenue loss of around USD 100 million. Our own expectations are that it might exceed that because the Walunj facility itself had around 46 ANDAs in the pipeline out of which half were in the process of submission and 12 of those have already been filed."
"So one should remain a little bit cautious and should have to have a holding period of more than 3-4 years for the stock to recover because even a company like Ranbaxy Laboratories had to spend around USD 30 million to appoint consultants and go through the entire remedial process to come to a resolution. The view is that it will take at least three-four quarters for some amount of resolution to come down at the Walunj unit, which will again act negatively against the stock," Joshi said.
"If one does not have a holding period of more than 3-4 years, I think it is prudent to possibly exit the stock on the rallies and look at certain counters within the pharmaceutical or the consumer durables."
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
