Hold Ranbaxy Loboratories: Madan

Ashu Madan, President, Core Client Group of Religare Securities Ltd told CNBC-TV18, "There are definitely concerns related to USFDA and if you look at Ranbaxy Laboratories, they are visible in the results also. If you look at the sharp increase in other expenses, that is precisely because of the remedial action being taken for the investigation expenses. But probably, the only silver lining is that is fag-end or the end of investigation and probably those expenses would be under control. So that may lend something positive in the next quarterly results."

He further added, "So obviously, the trend is down. The stock is already down, so at this price I would say that one should take a chance in holding. I agree with the fact that you will not see phenomenal run in the stock in the times to come or immediate future, but somewhere this fall should be pegged. It should stem the fall and one can see in an medium-term, in a couple of months you see it coming back atleast by Rs 30-40, that could be one silver lining."