Morepen Lab and DB Realty; Still Good at present levels?

db realty Morepon lab

Morepen laboratories

Morepen Lab is one of the healthcare company that has given more 100 percent return in last few months. Few months ago, there was no major buyer in stock to pull it at higher prices. But afterwards of nice profit posted in Second quarter of 2017–2018, and clearance of anti-asthmatic drug, Montelukast Sodiu by USFDA, there has been a great buying in stock. In August, stock was quoting around Rs 16. But within 4 months, stock has rose to Rs 38.

However, now at present levels, it becomes very difficult to predict future growth possibility in stock. There is no doubt that at around Rs 16, it was a good opportunity. But now when stock is around Rs 40, Stock looks fairly valued in market. I don’t think that there is any remaining potential upside in the stock. Therefore, buying or holding shares at current levels could be very risky. So, i think it would be best to keep profit booking at higher levels. Those who wants to buy for long-term should try to wait for slow down of this momentum in stock and then can enter in stock at best lower levels. Overall, as per their presence in market and future of healthcare sector, i think Morepen Lab has good no. of opportunities in long-term which in result could be seen in price of stock in Long-Term.

DB Realty

Another Stock which has rose over 50 percent in last few days is DB Realty. Special Court on thursday acquitted all those said to have been involved in the 2G scam including Vinod Goenka and Shahid Balwa, the managing director and key managerial personnel of realty firm. Thereafter, from the lows of Rs 35, stock has jumped to almost Rs 52 within a week.

After such decision by special court, an opportunity comes for most of the 2G Scam Linked Companies to file a case against the cancellation of 2G licences in 2012. However, it would probably take time to have any result on it.

In DB realty, i think this great rise is very uncommon to see as none of other linked companies shares are performing so well. Maybe, release of its MD from 2G Case could be a very positive thing for its investors. But as per current fundamentals, i think it would be some risky to make any fresh position or even holding shares. So, overall if you are looking for short-term, it would be best to keep profit booking at higher levels. However, if you can wait for 1-2 years and have bought shares at lower levels, than you can try to hold your shares in hope of some big positive change in the fundamentals of company after this 2G Scam outcome.

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