Wait for the right time to buy Ranbaxy: Neeraj Deewan

In a chat with ET Now, Neeraj Deewan, Director, Quantum Securities, shares his views on Ranbaxy.

ET Now: Do you think the story for Ranbaxy is now way beyond earnings, it is essentially about the merger and the ratios thereof and the earnings would not really have too much of an impact?

Neeraj Deewan: Yes actually earnings are always important but it is rightly what market news about what the merger and the ratio is going to be but as much as I have been following Ranbaxy, I was not expecting a very good set of results this time because of US FDA ban on their facilities.

ET Now: At the time when the announcement came in for Sun Pharma buying Ranbaxy, there was all that talk about whether the asset has been at fair value. Many on the street believe that the earning cycle has perhaps seen its worse for Ranbaxy but with set of numbers which are showing pain on the operational front as well and the top line growth also not being impressive do not you think that that raises a bit of a question mark or again like you reiterated it is all in the price?

Neeraj Deewan: Yes, it is mostly in the price because numbers were expects to be good but of course they are little worse than what people were expecting.

So you cannot have some reaction in the stock price in the couple of days or maybe week to follow but then it will get price adjusted.

All the worse news already priced into the stock now so I would really look at opportune time to get into the stock or buy the stock at any dip that is coming now.