Sreekanth…..As explained by me earlier in this thread also, Suven’s business model is different….If I tell you frankly, in last many years I tried evaluating Suven thrice but every time I got turned down and decided against investing in this company….its not that there is any particular problem with the company but it doesn’t suit my concentrated investment approach….As far as comparison with Syngene is concerned, I fond Suven’s business model relatively more riskier as its majorly dependent on success of Suven’s research and that too in concentrated therapeutic area…..no doubt success on that front could make it quite big but Suven’s approach so far seems to be more of an outlicensing……also, I try to stay away from managements who make noise of every small small things in the form of press releases to stock exchanges…..otherwise industry feedback is not bad for Suven its just that it doesn’t suit my investment style…..
Rgdg. MPS, it is getting attractive every passing day…..at less than 14 times organic FY16e EV/EBITDA the stock has reached extremely attractive valuation zone and one right move on inorganic front could significantly rerate the stock thats what I believe…..MPS seems to be in a sweet spot because of global turmoil which we all are witnessing…it has cash ready and it just need to spend it the right way without making any hasty decision….
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