Sharmila Joshi of Peerless Securities told CNBC-TV18, “The issue for Ranbaxy Laboratories has been the fact that first of all it had this whole law suit pending with US FDA for the longest time and we have just seen the completion of that. The law suit is out of the way but US FDA is still to give approval to its facilities and market is expecting that to come its way. After that they really have to ramp up their generic business in the US to the levels that it was earlier. So there are lots of ifs and buts involved in this and of course there is no taking away from the fact that Ranbaxy could easily do all those things and come back on track given a couple of quarters or six-nine months down the line.
She further added, “So that is the view you have to take, you can hold on to the stock and see how these issues are panning out or else just switch. You can also switch to Cipla and continue to hold that because there seem to be less concern over there. However if you stay invested in Ranbaxy then you definitely have to stay on top of what happens with both these events and then really see if they are able to ramp up the US business which I think they will be able to. I would give it a target of about Rs 480 but you need to keep track of both these events.”
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