Quarterly results of Ranbaxy may not be good: Jagdish Malkani

In a chat with ET Now, Jagdish Malkani, Member NSE & BSE, shares his views on the current situation of Ranbaxy:
ET Now: Down for most part of the year, Ranbaxy suddenly had a 60 per cent rally from the beaten down levels and then after one announcement, it was down again. Currently up at 6 per cent, what do you out here as a trader or as an investor?

Jagdish Malkani: I am amazed that Ranbaxy allowed it to happen to them three times.

One can understand the first time-they said that they were not given all the facts by the prior sellers, etc. There is maybe some substance to that, but to have it happen twice again is really does not speak well of their management initiatives.

However, the Japanese are always known for the long haul. Daiichi is a very solid parent and I cannot imagine that they will not get it right. However, there could be some shocks in the system.

The FDAs are really serious-they have got people on the ground. You have seen the activities they have been doing. Hence, it is not just going to die out.

Chances are, the results of this quarter are not going to be pretty, so there will still be some shocks ahead. Overall, this is Indian pharma, therefore, the generics have done very well.