Ranbaxy opened weaker today morning but strangely went on to hit a new high at Rs.596.85 before slumping to the day’s low point at Rs.575.65. It is currently at Rs.590 and seems to be on a real volatile streak today.

The stock is limelight post its disappointing Q1 numbers. It posted a consolidated net loss at Rs.186 crore after making a one-time settlement provision of 24o crore. This is the same felony charges case where the company had pleaded guilty and had agreed to pay $500 million in civil and criminal fines. Later, it was slapped with more regulatory sanctions due to manufacturing violations as per US FDA. The only solace here is that hopefully, this provision will once and for all settle the case and remove the sword of uncertainty hanging over the company. This loss of Rs.186 crore is lower when we look at loss of Rs.524 crore in Q1FY14 but not enough for the analysts who had expected the company to post a net profit around Rs.30 crore.