Sell Ranbaxy Laboratories, says Rajesh Agarwal

Rajesh Agarwal, Director - Research at Eastern Financiers Limited told CNBC-TV18, "Ranbaxy Laboratories is a sell because the numbers were bad, they posted a loss of around Rs 454 crore and that was because of forex loss of around Rs 300 crore. But there are lots of controversies ruling around this company about their old deals, foreign direct investment (FDI) issues and even on the operations front there are lot of problems and I do not think there is going to be any recovery in the near future and that’s another two-three quarters on the margins front."

"We are hopeful that in FY15, the company would start performing well. Therefore, unless an investor is ready to invest for more than 18 months or 24 months, I do not think Ranbaxy is a better stock. In pharmaceutical at least there are lots of better opportunities, for example Lupin has given good numbers. I think one should switch from Ranbaxy to Lupin for a target of Rs 1,015 in the next 9-12 months. I would say sell Ranbaxy and buy Lupin,” he added.