Jubilant Life Sciences may test Rs 570, says Ajay Bodke

Ajay Bodke of Prabhudas Lilladher told CNBC-TV18, "I would sort of be cautious in Dr Reddy's Laboratories. Our preference in pharmaceutical sector lies with some of the midcap names like Glenmark Pharma which also has seen some correction from its recent peak. There we expect that the Abbreviated New Drug Application (ANDA) approvals which the company has received in the current financial year, the same pace to continue also in the next financial year. And we are expecting a very strong growth in earnings. The company has right sized its balance sheet, used the proceeds from Temasek to bring down debt. So, Glenmark in a medium-term perspective would offer a very good opportunity.""The other script we have been very positive and which has nearly doubled from the recommendation that we had done is Jubilant Life Sciences. There again, the company has effected a spectacular turnaround in the first quarter, second quarter numbers again continue to show similar healthy growth and we are expecting going forward also, strong earnings growth to continue. That stock is something which we are very positive on. We have a medium-term price target of Rs 570 in Jubilant Life Sciences. In Glenmark we have a medium-term price target of Rs 1,186," he added."Among the largecaps, I think I would be a slightly contrarian and look at Sun Pharmaceuticals which also has seen a very sharp erosion from its recent peak essentially because of concerns on the Halol plant. But if I think the Halol issues do get resolved in the short to medium-term, then the stock is very attractively poised and can give a very good bounce back from the current depressed levels," he said.