Prefer Strides Arcolab, Sun Pharma: Deepak Shenoy

Deepak Shenoy of Capital Mind told CNBC-TV18, "Many midcaps have fallen 20-25 percent. Even the largecap types of Sun Pharma which was running away because of the Daiichi sell is back down to Rs 930, in fact today morning it was at Rs 920. So in the midcap pharmaceutical space, we like Strides Arcolab, we own some of it, we own Sun Pharma and so that continues to be something that we think will have a long-term value even at these levels."

"These stocks have fallen 20 percent and there is no reason why they cannot fall anymore. Much of the fall has been because of the foreign institutional investors (FIIs) exiting. The FIIs figures don’t show it much because of their big buy in Sun Pharma but they did exit Rs 1,700 crore yesterday and have been exiting for the last month," he said.

"In Aurobindo Pharma and perhaps even in Wockhardt, there may be value emerging from a perspective of someone who is desperate to buy in January. However, the best thing right now is to wait for results where there are no results. We would prefer to wait for results and see whether this growth is translating into numbers and we have had surprises. So until results come, I don’t think there should be a spot decision to jump on to the bandwagon right now."

"I haven’t done the valuation analysis on Wockhardt, so I cannot give the exact numbers at which I would say buy but it is much more than the recall of a few products. One thing is that the foods and drug administration (FDA) action is always considered to be something scary in a stock. It has taken a lot of stocks down 20-25 percent in the past, we have seen Ranbaxy get hit 20 percent in two days because of FDA action that eventually turned out to be much worse than initially reported. Initially it was just a few things and in the end they ended up banning two-three plants. So that is the fear, it is not just a one time thing, there isn’t just one action that is of bothersome."