Ranbaxy Labs is behaving in the most Quixotic manner. The stock posted a huge loss on the back of forex losses and yet currently, it is the top gainer on the BSE. The stock is up almost 13% at Rs.318.25, with an intra day high at Rs.320.40. Volumes are huge at almost 8 lakh shares compared to 2.30 lakh shares over past two weeks average.

The company, for Q2 ended 30^th June 2013, posted a net loss of Rs.524 crore and this was mainly on forex loss of Rs.540 crore and it also booked a loss of goodwill at Rs.120 crore at its overseas subsidiaries. The market is probably looking at the fact that if these two items were excluded, the company had actually booked a net profit at Rs.135 crore. Yet the fact that its performance remains poor and this is further indicated by the fall in net revenue, which at Rs.2633 crore was down 18% (YoY). The company has explained this fall in sales, stating that it was due to, “large contribution to sales from exclusivity opportunities in the earlier quarter.”  The stock gaining despite the falling numbers could be on account of bargain hunters probably taking stock post the consistent beating down it has gone through for some months now.