Phani Sekhar of Angel Broking told CNBC-TV18, "It will be a bit unrealistic to assume the same kind of growth trajectory for the next two years what Divis Laboratories have reported for the last two years. It has been a dream run for the company and for the stock as well. Not to say that the prospects do not look good. The prospects certainly are better and it is shown by the increased guidance of capex that the company has given to investors because of the higher demand from consumers."
"Having said that it will be a good idea for the investor if one waits and thinks of buying this stock on decline, because as I said its valuations have really run up a lot in the medium-term and it is now trading at around 18 times which is comparable to minimum of its larger established generic companies. Divis business model compared to a generic business model is still a bit risky. So purely from a tactical point of view the investor can accumulate this on declines," he added.
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