GRANULES INDIA - UPDATE

Now it is four months and almost 100% appreciation on  Granules India from my first BUY recommendation @ Rs.79/- (For old posting click HERE ). Now I am receiving  lot of e-mails and comments asking whether one should book profit at current level.In my opinion ,even the movement is very sharp it is not over valued while we comparing it  with its peers and the full extent of future positives not  reflecting even at current price level.Hence I recommending a HOLD  at current price level and even a BUY for those with high risk appetite and patience to wait above one year.It is a point to note that , on a consolidated basis its last quarter includes a foreign exchange gain of about Rs.8 Cr  and this may or may  not repeat in the upcoming first quarter.So it is prudent not to build high expectation while we approaching the result on 26/07/2012.The real benefit of expansion is expected to start only from third quarter and those who are buying at this rate should show enough patience.