Sell Ranbaxy, says Tulsian

Investment Advisor SP Tulsian is of the view that one can sell Ranbaxy Laboratories.

Tulsian told CNBC-TV18, "For Ranbaxy today is the last date for tendering the shares, so one needs to tender their shares before 5’oclock today. We are taking a call that probably 40% of the shares will get accepted under open offer at Rs 737. So participate in open offer and remain invested post open offer, at which the price will be at around Rs 400, don’t get disappointed that I have lost an opportunity or alternatively one can sell the share now in the market at Rs 492 and then get out of the stock and book losses. But I would advice to adopt the second strategy; the only strategy in this case is participating in the open offer."

He further added, "We have always seen that whenever a new promoter has come in into any company and here the old promoter no doubt that the CMD will continue as the CMD of the company, under the new management also. But it will take minimum one year for any new management to really adopt the whole company and then start infusing their expertise into it. So do not expect anything much probably for next 6-8 months because there are many litigations also in the international court pending. So may be the share should languish or should rule anywhere between Rs 400-430-435-440 for next 6-8 months. So there is nothing much upside from here on, expect for the retraction of this open offer, which is closing today."

Disclosure: Analyst has personal interest in Ranbaxy.