Nov 30, 2016 03:22 PM IST | Source: CNBC-TV18

Sell Wockhardt on bounce, says Shahina Mukadam

Shahina Mukadam, Independent Market Expert is of the view that one may exit Wockhardt on bounce.

Shahina Mukadam, Independent Market Expert told CNBC-TV18, "Wockhardt is a sell on bounce. We are seeing a bit of consolidation. The stock has almost half in the last couple of months, so we have a lot of negative news and it doesn’t seem to be stopping. The USFDA - they have problems, even their latest Shendra plant has got warning letters. Latest CP plant in UK has got warning letter. Definitely it is not affecting their US sales. However, at the same time UK sales may be impacted."

"In terms of a valuation I would say it is in line with the midcap pharma. If you look at it in current price it is still about 18-19 times FY17 earnings. I don’t see one reason why one should stay in the stock. One should definitely switch from this stock to some other similar mid to largecap pharma stocks, which I expect to do better over the next two years," she added.
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