Hold Ranbaxy Labs with a target of Rs 640: Agarwal

Rajesh Agarwal of Eastern Financiers is of the view that one can hold Ranbaxy Laboratories with a one year target of Rs 640.

Agarwal told CNBC-TV18, “I think one should continue holding to Ranbaxy, because the kind of numbers the company has reported yesterday with even the top-line jumping by around 73% and the bottom-line showing profit of around Rs 1,247 crore against Rs 304 crore. There were some amount of lower pricing and forex gain but even the margins were better. Going forward also if this performance continues, I think this company can give you good returns." He further added, "Even on valuation parameters when we compare with the peer group companies, it’s trading at a discount to its peers. So I believe one year time horizon, the target can be around Rs 640. One can continue holding to the stock and if it falls to around Rs 480-470 levels, new purchases can be initiated.”