Sell Ranbaxy Labs, advises Rajesh Agarwal

Rajesh Agarwal, Head of Research at Eastern Financiers told CNBC-TV18, “The woes for Ranbaxy are far from over. First they pleaded guilty in US and agreed to pay the penalty, the numbers were pretty bad - profit after tax (PAT) was down by almost 90 percent and now with the latest news of Daiichi suing the ex-promoter there is lot which is going against Ranbaxy.”

“In the short-term we could see an overhang on the stock. I won't be surprised if this stock falls below Rs 350 in the next three months. Hence, I would recommend a sell. Although, on the first look it looks like that the valuations are attractive considering the fact the kind of brand and the kind of generics they have, but still there are lots of apprehensions going on with the stock. It would be better to switch to likes of Cipla or a Dr Reddys which is doing very well,” Agarwal said.