Watch the interview of Prakash Diwan, Market Expert, Altamount Capital Management with Latha Venkatesh, Anuj Singhal, and Sonia Shenoy on CNBC-TV18, in which he shared his readings and outlook on market and specific stocks.
Sonia: It is interesting, there are some exemptions on this import alert, so, the view that some people have is that this exemptions could put a floor to Divis Laboratories. Is that your view as well because we have seen the stock correct a whole lot, how much of this is already in the news you think, in the price?
A: While this seems like a new addition to the news flow, I think the negativity was in the first place over done in any case. So, it is like when it is raining you have another shower, you really don’t mind getting wetter. So, that is what is happening with Divis.
All these tongue twisters of those exempted names typically mean that while this -- so what is this alert all about, it is what is called the DWPE which is detention without physical examination. So, you can’t let the goods go. If the US FDA someday realises that good manufacturing practices are being followed by the company at some stage after three to six months, things would change.
So, it is not something that is going to be the end of the road in any case. So, I think it will be a good opportunity to accumulate because this could probably be the nadir of the bad news impact on the stock.
Anuj: Metal stocks, anything that you would still want to buy right now?
A: Not really, Hindustan Zinc continues to get most of the attention, but my sense is even post the dividend payoff, it will continue to be a very strong operational performance given the strength and its change in the mining pattern that they are doing.
So, the next two quarters as well seem to be very visibly strong apart from the corporate action that is still there. So, that continues to be my favourite pick in that space right now.
Sonia: Any thoughts on Jubilant Life Sciences, do you track it?
A: We will have to wait for this specific kind of news flow to ascertain what the impact is. However, generally if you see, the stock has done so well primarily because all its activity is paying off, the manufacturing part, the CRAMs part. So, this is like everything finally falling in sync.
However, I guess it is fully priced in, there is nothing great in terms of new stuff happening unless this acquisition is a big trigger which I doubt. I would not want to kind of make any fresh recommendations on entering into this one.
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