Ajay Srivastava, CEO at Dimensions Consulting told CNBC-TV18, "You should focus on companies which are more service orientation, which are more overseas driven with overseas customers working with them and that gives a leverage in the market."
He further added, "Do not go for active pharmaceutical ingredients (APIs) and formulation manufacturers. Sun Pharma is expensive stock, but it has delivered the returns to shareholders and the pipeline of product that they have including their R&D projects should at a reasonable count. It will give a 10-15 percent return. It is not going to be a multibagger stock."
"If you want to take 30-40 percent return, you go to the next level things like Biocon. It has done a decent job already this year, it has gone from Rs 300-330 to Rs 350-360, but should do about Rs 450-500 by next year given the fact that there is a huge boost of contracts coming into India," Srivastava said.
He further said, "Divis Labs is a star performer, but the share prices struggled in the market between Rs 950 and Rs 1,020-1,040. So we are saying services space in the midcap or working with overseas multinational customers is the space that we want to invest in."
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
