Its all gone Pete Tong in this one…
Sometime in early 2017 I was holding Divis and used to diligently follow their concalls. The promoter had assured the querying investor/analyst that he was confident of coming out of the usfda issue that was plaguing the company at that time by the end of the current quarter but during the follwing quarter concall post the results the problem was still not over… I was making a 50 rupee profit, probably bought around 575-600 and decided to book out as the promoter couldnt fulfill his word… the issue got resolved soon after I sold and looking back on hindsight that was just the beginning of the bull run for Divis Labs and the share price went on a tear till 5000…
Having followed Natco Promoters I am of the view that they are experienced, have a clear goal and growth path for their company in complex generics …They have faced USFDA observations in the past and this time too I am confident that they will resolve it in a quarter or a month more. That being said, Kothur is a big dedicated export manufacturing plant for them and most likely handles the bulk of the exports for the company having more than 1000 employees working there. I dont know how or whether these usfda observations restrict exports from this plant, but it is obvious that this very fear is sinking the share price for now.
A H&S breakdown occured today, the target is coming to around 668… I will be a buyer around 700 for sure
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