Mayuresh Joshi, VP- Institution at Angel Broking told CNBC-TV18, "Post all the developments that have happened on Ipca Labs including the inspection that has happened and the probable observations that one sees on the Ratlam and Indore unit, rightfully we have also cut down our estimates in terms of sales for FY16, FY17. But even if you factor in the cut in sales it is a qualitative franchise that one is looking at, the kind of ANDA applications that it has got, the pipeline that it has got, is quite humongous. So in that sense itself after the steep correction that we have seen, valuations look pretty attractive to us."
He further added, "The investors should hold on for more than a year, may be a couple of years time because for the earnings to recoup it might take a couple of quarters or three quarters at least with the resolutions taking place, but once that happens probably the earnings growth will be far faster than one probably would factor in on to the number estimates for FY17. So hold on to the stock, we remain optimistic on that stock with a long term perspective."
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