Stay with Ranbaxy: A Srivastava

Ajay Srivastava, Dimensions Consulting is of the view that one can stay invested in Ranbaxy.

Srivastava told CNBC-TV18, "There is no fundamental basis on valuing Ranbaxy today, except the fact that if the Daiichi Sankyo takeover happens and it comes through, what is going to be the arbitrage situation on which is very favorable at this point of time even at Rs 460. The equation is very favorable in terms of the proportion of buy out versus values, so if one were already invested in Ranbaxy, I would say please stick on to Ranbaxy because Daiichi looks to be a certainty by all standards, one can’t say but looks to be certainty you will make money out of it.”

He further added, “But the question is whether you put in fresh money to take up position; again the question is of how long is the horizon. A buy back will take minimum 4 months to come through, so can you last through the 4 months period, I think that is the call. But otherwise if you are invested stay with it and go for the buyback.”

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.