At the CMP, Wockhardt Ltd stock is trading at 8.5x CY2008E and 7.4x CY2009E FDEPS, which is at a significant discount to its peers. A substantial part of the discount is on account of the high competitive pressures in the Generic space and dependence of the company on its M&A strategy to scale up its Generic business. Wockhardt Ltd stock is quoting at 4.5x EV/EBDITA CY2009E, which is at a significant discount to its peers, which are trading at 6.5x EV/EBDITA. We believe the stock is available at attractive valuations even after discounting the concerns. Hence, we maintain a Buy on the stock.

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