Buy Sun Pharma Advanced Research on dips: Prakash Diwan

Prakash Diwan of Altamount Capital told CNBC-TV18, "My sense is that Ranbaxy Laboratories and Sun Pharmaceutical Industries are unitary kind of focused activity, Sun Pharma Advanced Research Company (SPARC) is going to start rolling out a lot of these. Rights issue has also gone through; they have raised capital to continue doing that. I think SPARC will start seeming undervalued in a while. It is just that the correction has kind of got people to book profits because it had done more than 160 percent in one year. So, naturally people tend to book profits. However, it is an amazing story."

"There is nobody who can put a target on this in terms of a PE multiple and valuation. It is into a black box. So, it is best to have it on dips. Buy it every time it gives you some leeway in the correction. What could go wrong is the ownership if it were to get more concentrated to just one family or one group of promoters – then you may not derive the true benefits of the company's worth," he added.