Ranbaxy can give high returns but extremely risky: Dron Cap

Pathik Gandotra of Dron Capital told CNBC-TV18, “In case of Ranbaxy Laboratories, it is very risky because three of its plants are shut; the fourth one has got a 483 form. So I would be very scared. Although I do believe that since its fourth facility is in the US, the plant may not shut. If the plant does perform then they can get their products rolling.”

“It is a long-term story. The valuation is right, but the risk is too high. If there is some event happening on the fourth plant then there can be a serious issue. Otherwise everything was going on well for it till the Mohali import alert came and then 483 on the Ohm Laboratories. It can also give a very high return, but it is extremely risky,” Gandotra said.