Negative view on Ranbaxy: Daljeet Singh Kohli

In a chat with ET Now, Daljeet Singh Kohli of IndiaNivesh, shares his views on Ranbaxy.



ET Now: What is you call on Ranbaxy? The company has clocked less-than-expected numbers on almost all the fronts.

Daljeet Singh Kohli: We have been holding a negative view on the Ranbaxy stock for sometime.

The quarterly numbers for Ranbaxy have always been haywire.
It is very difficult to predict and understand them. This is due to two reason. One, there is always lack of clarity from the management side. You do not get enough information. This is in contrast with other pharma companies, which provide sufficient information.

The second is these one-offs which keep coming in, has been a flavour for them for many years now. So, it is always difficult to get a handle on Ranbaxy numbers.

Because of all these reasons that there is not enough data available to actually take a conclusive decision. We try not to play Ranbaxy. For almost two-three years, we neither recommend it nor have any rating on it. It is despite the fact that the stock has moved substantially. So, a better way to play it would be probably to look at Sun Pharma. Take an equation of 0.8 times, where Ranbaxy will be always at 80 per cent of Sun Pharma depending as per their ratio. At present, Sun Pharam may also be overpriced. Therefore, we have a hold rating on Sun Pharma.