See downside of 5-7% in Sun Pharma: Sachin Shah

Sachin Shah of Emkay Investment Managers told CNBC-TV18, "You know prima facie the numbers look probably very bad for Sun Pharmaceutical Industries but there are lot of one-offs because of some integration with Ranbaxy Laboratories. So they would have some cost over there and there would be some other one-offs also, but I think the biggest concern that our analyst have is more on the Halol facility where they have issues with US FDA. So I think there is no clarity that has emerged from there, I think there is supply issue from that particular plant. This is where nobody has any great visibility. Our analyst was also fairly disappointed because in the earnings call the management has not given any guidance for the next one year or so which has not been the case in the past. So there is bit of uncertainty now and we have seen good 10 percent off .""However, I think it is a classic wait and watch at this point in time with this kind of stuff because this is the main issue with the pharma company particularly the ones which are trading at very high valuations. So it is better to always buy at reasonable valuation rather than buying at very high valuation. So there is a possibility that one can get little bit better valuation from hereon may be another 5-7 percent downside," he said.