Buy Natco Pharma: Rahul Arora

Rahul Arora, CEO at Nirmal Bang Institutional Equities told CNBC-TV18, "Natco Pharma can give you about 30-35 percent earnings growth in the next two-three years. I won't look at it from a target price perspective because it has overshot our target. My target is around Rs 1150, so we would look at this as an option play because there is so much of underlying option value that comes through, this is a company that could actually double its EPS every two-three years if a particular drug comes through. The only caveat is a US FDA inspection of its plant which has become par for the course these days and this is something that you cannot Budget for."

"So will I buy Natco at Rs 1500 ex Copaxone for a two-three years horizon, because the drug pipeline is very strong. I think five years down the line when you look back on this company, it would be one of those companies where you would look at as an emerging company or something of that sort," he said.