Buy Sun Pharma, says Lancelot D'Cunha

Lancelot D'Cunha, CEO at ITI Wealth management told CNBC-TV18, "The fall in price gives an advantage or gives an opportunity to buy into Sun Pharmaceutical Industries because over the next two-three years I do see Sun Pharma combining after the merger with Ranbaxy Laboratories happens, they will be one of the larger players in the pharmaceutical space and Sun Pharma has a very strong pipeline of drugs which are already filed in the US and US sales after this initial hitch which is these regulatory issues get sorted out, its more a matter of getting the right kind of practices put into the plant and then get certification but overall the business of Sun Pharma looks very strong and one should use this dip in terms of an opportunity to accumulate the stock in the long-term."

He further added, "There could be two outcomes; if the Halol inspection is positive and Sun Pharma is cleared from almost all issues then the stock price would jump up. It will be difficult then to try and get the stock at this level. Since you are looking at two or three year horizon a better strategy would be to put in at least 25-30 percent of capital and if there is a negative news then you can add another 70 percent at lower value when the selling stabilises at lower levels because that would be an opportunity to buy."