Hold Ranbaxy, says Baliga

Ambareesh Baliga of Karvy Stock Broking is of the view that one can hold Ranbaxy Laboratories.

Baliga told CNBC-TV18, "In Ranbaxy the developments as far as the US FDA is concerned are surely negative. As long as the investigations are on I suppose that there would be some pressure on the stock. But whatever Mr. Singh said yesterday as far as the open offer is concerned and the deal going through, people should take some solace in that because since the deal is going through at Rs 737 surely there will be an open offer opening next month. So one can expect at least 33% of the holdings to be accepted at Rs 737 and the balance cost of the holdings would be substantially lower. If someone buys even at these levels of around Rs 445, I suppose the balance cost of the holdings would work out to closer to around Rs 310-320, which I think is extremely decent as far as Ranbaxy is concerned."

He further added, "I don’t think one should really panic at these levels. If you have not sold at Rs 570-580 when it moved up after the deal was announced, there is no reason to sell it at these levels of Rs 445. I suppose one should just hold on and give it in the open offer."

Disclosure: Analyst has interest in Ranbaxy, Tata Motors and TCS.