Wednesday 12 November 2008

Accumulate Ranbaxy Labs: ULJK Securities

ULJK Securities has recommended an accumulate rating on Ranbaxy Laboratories in its November 8, 2008 research report. "Sale grew 10.5% to Rs 11,462 million strongly supported by 20% growth in sale in the emerging markets. Received Rs 35,849 million against preferential equity and warrant issued to Daiichi Sankyo. We believe this is a good opportunity for the current promoter, Daiichi Sankyo, to increase stake in Ranbaxy in the open market from current 63.92% to 75%, the new government limit of FDI investment in India. Ranbaxy is currently trading at 8.5x FY09 earnings and 5.2x EV/EBITDA."

"We expect earnings to go down by 8-13% by over slow US sales. We recommend 'Accumulate' based on the long term growth potential of Ranbaxy generic business," says ULJK Securities' research report.

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Source: Moneycontrol

Posted by Harsh at 09:21

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