Sharmila Joshi, Head of Equity at Peerless Securities told CNBC-TV18, "The management of Opto Circuits India has been saying that they are working on the working capital issues, so just see whether they have really been able to address those. A lot of factors have hit this stock at various stages and we have really seen this deep drawdown to these levels."
She further added, "Just wait to get clarity on that and look to exit, because it certainly does not make much more sense to keep averaging now. It is too long a road to look at in terms of averaging and that too because we are not really seeing any comforting sign of any good recovery in this space as of now. Once again I would really wait, she said."
"If one has to switch out of this stock one should look to buy a large cap stock and really stay away from high-beta. It might be a good idea to invest into a pharma company among the three-four large cap companies. Once again I would really wait. I would recommend to let pharma stocks correct from current levels, because both Lupin and Sun Pharma are at 52-week highs. Maybe one can look at Cipla at the current price and really switch to a safer bet like that or maybe a fast moving consumer goods (FMCG) companies like ITC or Hindustan Unilever (HUL)."
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