Hold Sun Pharmaceutical Industries, may test Rs 600: Shahina Mukadam

Shahina Mukadam, Independent Market Expert told CNBC-TV18, "I think the rewards outweigh the risks for the longer term investor. One is because I think Sun Pharmaceutical has corrected. There were a lot of negatives, but I think the sharp correction in the stock over the last two to three years has actually to a large extent factored it in."

"Over the next one year I think the negative performance will continue in terms of decline, and that we saw in the first quarter, so the same dismal performance is likely to continue over the next two to three quarters. However, because they have got a high base, they had got a huge product which went off exclusivity 180 days, plus the whole US market, the generic market is suffering from increased competition, but having said that, over the next two to three years I think there should be a rebound in earnings."

"I think the sentiment for pharmaceutical has started to change. So, if one is a longer term investor, this would be one of the better times to get in and hold. I would suggest he continues holding. I would give a target price of Rs 600 if one holds it for more than a year and keep a stoploss at Rs 475," she added.