Hot Chips - Ranbaxy Laboratories
By Saikat Mitra |
9/27/2010 1:07 PM Monday
Ranbaxy Laboratories has a balanced revenue mix with the high-growth emerging markets contributing up to 56 per cent to sales and the developed markets contributing 44 per cent. During CY08, Daiichi Sankyo (DS) acquired a majority stake in the company. Due to the settlement-related income from Flomax and exclusivity in Valtrex, the operating margins on a consolidated basis are likely to witness good growth going ahead. Also, owing to several key FTFs (first to file) opportunities which are expected to deliver maximum contribution at the EBITDA level, the margins are likely to improve. The company continues to cooperate with the FDA authority and the Department of Justice for early resolution of the pending issues at its Paonta Sahib (Imposed Application Integrity Policy) and Dewas facility (cGMP issue). The stock can be looked at for gain in the short to medium-term perspective.
Find More Articles on: Fundamental Picks, Stock Recommendations, DSIJ Magazine, Hot Chips