Buy UPL on declines, says Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "Once you look at the ratio dynamics and you probably have a look at who is going to benefit the most out of this transaction, our take is probably UPL can be a key beneficiary. If you look at the core dynamics taking shape I think the key geographies that each of these companies cater to both of them have distinctive advantages. So, I think Thailand, Australia where Advanta has a unique hold I think UPL will largely benefit on that count.""If you are talking about the other markets including Mexico, I think Advanta will also have some amount of beneficial impact going forward. When you are talking about financials clearly I think the UPL the kind of performance that they have exhibited probably in the quarter gone by a little bit lacklustre I would say but again I think we are very optimistic in terms of how their earnings potential is going to go going forward. With around USD 3-4 billion of patents going off generic, I think UPL is in a very strong position. Clearly I think you have got USD 18 billion odd going off patent over the next few years.""I think the earnings momentum should continue in a very substantial manner. Integration again should have long drawn effects in a positive manner. So, I think that standalone EPS that we are probably working with UPL at the moment around Rs 38.5 kind of earnings structure that we are looking at, I think that should show some positive momentum going forward. So, in a nutshell I think UPL should benefit. So, any decline becomes a good buying opportunity in my opinion," he added.