Zydus Wellness looks pretty good: SMS financial services

Ganesh Shanbhag, SMS Financial Services in an interview with ET Now talks about high-growth stocks including sugar.

If you could walk us through some of the other picks that you have and also the kind of percentage appreciation that you see in the stock that you have recommended?

We could look at Fresenius Kabi Oncology, it is an oncology dominated company, originally Dabur Pharma taken over by Fresenius. It has turned the corner last year and we see a sizable growth coming over here. We expect a price target of around Rs. 180 over a one-year period. There could be a possibility of a delisting also here because the management is holding nearly 80% and above, so that looks to be a good bet. The next company we could look at was Zydus Wellness, the stock seems to be pretty good.

Today we have heard Mr. Wagle recommend a lot of sugar stocks, this is actually a contrarian call. It is a very good call considering the kind of diabetic patients in this country. We are the diabetic hub of the world and the sugar-free product is a great product. The kind of top line that the company is targeting over the next two years seems to be very attractive. We are putting a target of around Rs. 700 over a one-year period on this stock.