According to SP Tulsian of sptulsian.com, one shouldn't buy Suven Life Sciences at these levels. â€œOne may prefer Wanbury or Bliss GVS Pharma from the same space,â€ he adds.
SP Tulsian of sptulsian.com told CNBC-TV18, "I will not advise buying Suven Life Sciences immediately. It has run up from Rs 22 to now the current level of Rs 80; no doubt the results have really been very good. They have posted an EPS of close to about Rs 4 for the second quarter and even if you extrapolate the present working probably in FY14 they will be having an EPS of close to about Rs 15-16."
"The share is now ruling at a PE multiple of close to 5. But you cannot give these API kinds of companies a higher valuation of more than 5.5-6 times. We have seen the stocks having run up in these last couple of days by about 20 percent plus. So I will not advise buying it at a level of more than Rs 70-72," he added.
"There are many ideas which are in that space. One can look for a stock like Wanbury which is ruling at Rs 22-23. Maybe one can look for a company like Alembic Ltd. which is a small priced stock, even that looks a good idea or maybe Bliss GVS Pharma even that looks a good idea at about Rs 35-36. You have to have a longer horizon, because if you enter now at the current level of Rs 80 and if you see the stock correcting, I do not think that people will really be having that kind of horizon."
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