See upside in Divis Laboratories, says Shahina Mukadam

Shahina Mukadam, Independent Market Expert told CNBC-TV18, "There are better stocks available in the pharmaceutical space, but Divis Laboratories is showing some bounce. So, I think there is about Rs 30-40 upside from here even if enter at current levels. However, the USFDA issues are going to continue with this company albeit for a limited number of products, some of them are exempted from its Vishakhapatnam plant."

"I would think that we are likely to see a phase of flattish type of numbers and with a valuation of about 15 times P/E I expect an EPS of about Rs 40 one year forward. I see a limited upside; I think there are better opportunities available in the large pharmaceutical space where the stocks have corrected a lot and where the resolution from the USFDA has started to happen."

"You can take your pick, there are many of them. You start with a Lupin, I think there the correction has happened a lot and numbers also have been disappointing. I think going forward you can see some improvement. Aurobindo Pharma which I personally hold, we have seen a lot of disappointment come in but the management remains optimistic, next year should be better."

"You have Cipla that is likely to see its new product launches. There are a big host of companies, all of them are trading in the valuation between 16 and 20 times multiple one year forward which offers attractive returns going forward," she said.