Ranbaxy Labs an underperformer: Anagram

Anagram Research has kept an underperformer rating on Ranbaxy Laboratories in its November 8, 2008 research report. "Ranbaxy’s Q3CY08 results have been disappointing, the USFDA import ban on the 30 products from its two units at Paonta Sahib and Dewas has hugely impacted its performance and also cast a shadow over its future prospects considering the ban came into effect only from September. Also as there is no certainty when this issue would settle and whether Ranbaxy would be able to recapture the market it has lost puts a question over the future performance of Ranbaxy."

"We are though positive on the Daiichi-Ranbaxy deal as it would significantly strengthen its balance sheet, as cash infused by Daiichi would help reduce its debts significantly and also give opportunities for organic and inorganic growth in the long run. At CMP of 218 the stock is trading at 2x its Trailing Sales. We are keeping “Underperformer” on the stock," says Anagram's research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol