Putting target number on Wockhardt difficult: Avinnash Gorakssakar

ET Now: The other interesting one is what would you do with the two pharma boys which is Wockhardt and Ranbaxy because after Glenmark receiving it is, of course an ET Now Exclusive, but after Glenmark receiving that US FDA approval may be people are just thinking that some of the other plants also will start getting their problems resolved, could that be the reason why there is this excitement here and does that reason tempt to buy into either Ranbaxy or Wockhardt?

Avinnash Gorakssakar: For a high risk kind of investor clearly if one looks logically almost all the negatives seem to have been priced in the current stock prices. Beyond these levels, I do not think anything further negative could happen to either a Wockhardt or may be a Ranbaxy so clearly to that extent somebody who wants to take a longer term call and clearly considering the fact that these were sharp under performers in the earlier rally when the pharma stocks actually outperformed so I would say that clearly allocating some money in the stocks would definitely make sense.

Wockhardt if at all the US FDA clears all the plants where there are currently restrictions we could see some further rerating and obviously now entering these stocks would be a little risky because we have seen 25-30% upside already happening but clearly these kind of stocks are stocks probably you will not see a correction for sometime because if the news is right they could further move up.



ET Now: So what is your target that you would put out on Wockhardt?

Avinnash Gorakssakar: I would say putting a target number on Wockhardt would be difficult because already we have seen 30-40% upside. I would say that if one were to take a medium to longer term call, say over a year, then probably we could see levels of 700 or 800 but in the shorter term how the stock behaves is really difficult to say.