Buying PlethicoPharma now poses risk: Deepak Mohoni

In a chat with ET Now, Deepak Mohoni, Director, trendwatchindia.com, shares his views on PlethicoPharma.

How would you stack up a PlethicoPharma in comparison to some of the other midcap players in the space?

This stock is really different from most stocks in the market because it is an extremely flat mover. Its entire range of the last 6 months is just 10%.

So, until there is a significant breakout, there is not much point in taking a position in a stock like Plethico. In fact even if you look at the last 2.5 years, the range is 30% given the kind of moves that we have seen in the market, 30% is low.

So, very flat stock and buying now poses the risk that if the breakout or the movers and the downward direction, it could come down very very sharply. That has happened to a lot of stocks. So, it is better to wait for an upward breakout and then think of buying it.

Best not to do anything at all in it right now. Most of the other pharma stocks on the other hand they are trending fairly well and many of them are upward except maybe an Aurobindo, Ranbaxy are a bit under pressure now. So, this is not like the other pharmas at all in that sense.