Risk-averse investors should prefer Sun Pharma over SPARC: Daljeet Singh Kohli, IndiaNivesh Ltd

In an interview with ET Now, Daljeet Singh Kohli, Head of Research, IndiaNivesh Ltd, shares his views on Sun Pharma and SPARK.

ET Now: You track Sun Pharma quite closely, what is your take?

Daljeet Singh Kohli: What all this company can do is in the pipeline. It is on the right path. They are doing a lot of R&D work. But 9 out of 10 R&Ds generally fail, so it is a risky proposition for an R&D company. You will have to be patient. This stock purely lives up to its name. It comes always in SPARC only. Every time either it moves 10% up or 10% down depending upon what kind of news flow is there.

So, I would say that SPARC as a stock is meant only for people who are very high traders or who have that propensity to take such a high risk. Other normal investors or portfolio investors should not get into this stock. If they have to play this group, they should play through Sun Pharma, which has a sustainable business and there is visibility of earnings there. The integration process going on with Ranbaxy is also an issue with Sun Pharma.