Book profits in Granules India, says Shahina Mukadam

Shahina Mukadam, Independent Market Expert told CNBC-TV18, "Today Granules India has rallied because of the Establishment Inspection Report (EIR) that it has got and no adverse comments on USFDA. So I would take this opportunity to book profits in the current rally, maybe closer to Rs 135 for the reasons being that if you see the performance expected in FY18, I expect flattish type of performance at best."

She further added, "I don’t think they will be able to maintain the 20 percent type of EBITDA margins that we have seen across pharmaceutical companies. In terms of valuations, I think at current levels, while it is cheaper than the larger pharmaceutical companies. I think this is the time we are getting to get into at dips the large pharmaceutical companies which I believe have a better business model. So I would use this opportunity to switch into better quality names."