Re-rating in Wockhardt likely to happen once FDA problem is solved: Avinnash Gorakshakar

In a chat with ET Now, Avinnash Gorakshakar, Head of Research, Miintdirect.com, shares his views on Wockhardt. Excerpts:

ET Now: Why would anybody buy Wockhardt? There is an FDA problem, they cannot export out of their Chikalthana unit and there is a problem in one of their manufacturing facility in Maharashtra?

Avinnash Gorakshakar: If you see the pharma pack, most of the stocks have moved remarkably. Wockhardt has seen levels of even 2000. So clearly once the FDA related problems are over and hopefully the company gets back on track, the market is playing back on the recovery and on the turnaround kind of story. There have been some reports that possibly some strategic investors would also get in into company. So combination of this and hopefully after a couple of quarters if we do see some traction on the core earnings, that definitely means that there could be good amount of rerating. Clearly, as you rightly mentioned, this is delivery, cash delivery kind of which is happening on Wockhardt. So obviously some sort of gradual accumulation has been happening and once we get a sign of some turnaround happening, the stock can get further re-rating.