Plethico Pharma stock is undervalued: Networth Stock Broking

ET Now spoke to Prakash Diwan, Head - Institutional Business, Networth Stock Broking, on his stock recommendations.

ET Now: What's your outlook on Plethico Pharma?

Prakash Diwan: Plethico is one of those new age companies, which is into nutraceuticals apart from the allopathic drugs that they have been into and interestingly the acquisition made last year of Natrol in the US has been extremely successful for them, being able to distribute a lot of higher end products.

So they have started doing that using the Natrol shelf space to distribute products across the world and they have got a unit coming up in the UAE, which is going to make sure that the logistics will be very convenient, cost effective for them to supply to the CIS in the African continent as well.

The stock is undervalued as compared to its peers just available at 4.6 times calendar year 11 earnings because they follow a January to December kind of annual feature but it is undervalued to a large extent and you could see this upside happen.