Buy Ajanta Pharma with stoploss of Rs 325: Agarwal

Buy Ajanta Pharma with a stoploss of Rs 325, says Rajesh Agarwal, Head of Research at Eastern Financiers.

Agarwal told CNBC-TV18, "One can buy Ajanta Pharma with a stop loss of Rs 325 and a target of Rs 365. We like this stock because this is a mid size brand focus pharmaceutical company. It has a great thrust on R&D gearing to enter US market, which is one of the world largest market. Has a strength of 200 scientists with them and they have recently sold their Thirty Plus brand to Dabur which is a positive sign because they were able monetize their OTC brand, which they have already discontinued selling those products from last three years."
 
He further added, "The company has shown consistent growth from last one decade and they are trying to enter into new areas like orthopedics, gastronotology, respiratory etc and on the valuation front also it is trading at a PE of less than 7 its FY12 earnings. So we think on the valuation parameter also this is an attractive buy." Click HERE to know the rules and follow the score card