Dipan Mehta Member of BSE and NSE told CNBC-TV18, "There are lot of unanswered questions as far as Wockhardt is concerned. Although the management has put up brave face as far as all the concerns that the USFDA has about its various plants, the question does remain as to whether they will be able to sustain the growth rates which they have been maintaining over the past 2-3 years or so."
"So, in a situation like this, I think investors are best advised to stay away. No doubt it is a great company and rupee depreciation will tend to benefit them significantly considering the quantum of exports, but then these are serious concerns and unless the management gets all these various issues out of the way, I think the stock will remain under stress. With the kind of correction which it has seen, at every rise there will be a lot supply because it is one stock which was the favourite of lot of institutional investors as well and it was to an extent over owned as well," he said.
He further said, "The technical's also don't work in favour of the stock price at this point of time. So, I would say that fresh purchases may certainly be curtailed or avoided and may be at every rally one could look at lightening up positions a bit. At this point of time what the management has to say for this quarter results also will be very important. So, one could wait to hear what they have to say and then perhaps take a more informed call." Also Read: Wockhardt hits 52-week low on UK import alert
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