Buy Aurobindo Pharma on declines: Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "We do not cover Sun Pharma Advanced Research Company (SPARC) but whatever I cover of SPARC, it is a time consuming process, so clinical trials going through various phases, phase one, phase two, phase three. It takes its own sweet time and the monetisation of once the molecule is ready with the patent approvals that market size which is addressable for that specific molecule needs to be addressed at that point of time.""The stock did give a wonderful rally in the year gone by but it is still backing the five molecules that it has developed and the last molecule that it has developed is outsourced to Sun Pharma, where it sees decent opportunity. So the way forward for SPARC through its two divisions, the novel drugs discovery division and the new chemical entities. How these products go through their clinical stages and how monetisation can happen but the time constrains and the time approvals required for all these approvals to take place and the monetisation is an unknown factor," he added."So with a long time horizon of more than two or three years, one can hold on to stock else what we like from the pharmaceutical space is Aurobindo Pharma; announced good set of numbers, the acquisition in Actavis and Natrol have worked in its favour. It is more than a couple of billion dollar companies in terms of topline, 80 percent of its revenues are driven by formulations, the management is very hopeful in terms of a lot of abbreviated new drug application (ANDA) coming through, 379 filed, 201 approvals received, 18 injectables expected to come throughout the next two years and in terms of valuations also the stock is reasonably priced with the kind of approvals it has received over the past few weeks. So as an alternate in the pharma space Aurobindo is something that we are liking on decline with a target of Rs 872 over the next 12 months," he said.