Suven Life Sciences could be a dark horse: Devang Mehta

In a chat with ET Now, Devang Mehta, senior VP & head of equities sales at Anand Rathi Financial Services, shares his views on Suven Life Sciences.


ET Now: You were recommending Suven Life Sciences. What is the rationale behind the stock and what sort of price target do you foresee in the next one year?

Devang Mehta: Suven Life Sciences is an excellent high-growth, high-margin business which operates out of the new chemical entity-based, contract research-manufacturing space.

Typically, it is a pharma stock which enjoys very high margins. In addition, it has a huge monetisation opportunity for one of its molecule — SUVN-502. The molecule is in the advance stage.

Other than this, the company has no working capital issues; it has superb balance sheet and good return ratios. We feel that this stock can probably be a dark horse going forward. We have a very conservative price target of around Rs 336 for Suven Life Sciences.