Hold Ipca Laboratories, says Arvind Bothra

Arvind Bothra, VP - Institutional Research at Religare Capital Markets told CNBC-TV18, "From timeline perspective, the management of Ipca Laboratories has guided for some clarity on the issue in the next four to six months. So, that should be an interesting timeline to watch out for. However, in my view typically FDA issues timeline can be little unpredictable."

"However, the key thing to watch out for would be whether this form 483 issue or observation escalates to a warning letter or an import alert in which case there would be more downside from the current stock price. In terms of the level where I find risk reward attractive, I think anywhere between Rs 675-700 is where I would be comfortable pushing the stock because the remaining business still holds value. It is a steady and strong performing branded business in India and in emerging market and the company has been doing reasonably well," he said.

"So, the FDA issue is the only reason why I have a hold on the stock. However, over the longer term I still see value. I would be cautious until clarity emerges."