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Last Updated : Nov 12, 2013 04:16 PM IST | Source: CNBC-TV18

Avoid Suven Life Sciences: SP Tulsian

According to SP Tulsian of sptulsian.com, one shouldn't buy Suven Life Sciences at these levels. “One may prefer Wanbury or Bliss GVS Pharma from the same space,” 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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First Published on Nov 12, 2013 04:16 pm
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