Markets
BSE See NSE See 39,088.55
127.76 (0.33%)
collapse Related Readings collapse

Ranbaxy: Recommendation Review

| 9/6/2012 9:00 PM Thursday

The shares of Ranbaxy have jumped by over 30 per cent from our previous ‘sell’ recommendation in our analysis of the stock in DSIJ Vol. 27, Issue No. 7 (dated 25th March, 2012). The share price has recovered on speculations that Ranbaxy’s covered facilities (Paonta Sahib and Dewas) would get USFDA approval.

There have been a few developments after our recommendation. First, Ranbaxy got approval for its Mohali facility, which is now operational for the generic version of Lipitor. Secondly, USFDA has cancelled approvals of 27 ANDAs of Ranbaxy as per the company’s request and as a requirement of the consent decree.

In the recent quarter, the USFDA has cleared a few warning letters/facility approvals (Claris Lifesciences, Cadila Healthcare, DRL, etc). Ranbaxy has also received two product approvals in the June 2012 quarter. Besides, it is also strictly complying with the USFDA regulations, which could potentially lead to the removal of the ban.

In the last two quarters, Ranbaxy has seen a huge jump in its revenues and earnings largely due to the rights to sell generic Lipitor for 180 days. However, this exclusivity has ended by May 2012, and other pharma companies have launched their versions of Lipitor. This means that the US sales in the next quarter may not be very robust.

Ranbaxy has launched an authorised generic of Actos recently, despite which we expect the US revenues to slow down a bit. Its India business is also growing at 13 per cent, which is below the market growth rate. Having said that, we also can’t ignore the positive signals due to which the stock has surged. Factoring in these points, we ask investors to buy the Ranbaxy stock on dips.

 

Find More Articles on: DSIJ Magazine, Reviews, Stock Recommendations, Fundamental Picks, Product, Large Cap

news letter

More for the early bird.

Get the post-market reports and breakfast news right in your inbox. See latest »

DSIJ Mindshare

12345678910Last

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Logistics sector will play a vital role in making the concept of ‘Make in India’ a success. This will be further aided by some of the recent steps taken by Government of India such as granting of infra sector status to logistics sector.

Best and worst Performing Sector Funds of Year 2017

Best and worst Performing Sector Funds of Year 2017

As the year-end has approached most of you are eager to know the mutual fund movers and shakers of the year 2017. Read on to find the performance of various sector dedicated funds.

Markets may start positive, but volatility likely due to F&O expiry

Markets may start positive, but volatility likely due to F&O expiry

The start of the F&O expiry day is likely to be in the green, but volatility may creep in with the progress of the session. The SGX Nifty suggests that the Nifty could open at 10,525 with gains of 32 points at the opening bell. 

Pidilite announces buyback of Rs 500 crore

Pidilite announces buyback of Rs 500 crore

The buyback offer comprises purchase of up to 50,00,000 equity shares. The buyback offer size comprises 0.975 per cent of the total paid-up equity capital of the company.

Bank Nifty drags markets to close in the red

Bank Nifty drags markets to close in the red

The late session fall in Bank Nifty changed the direction of the market, leading to a marginal fall in the benchmark indices. Bank Nifty yet again resisted at its multiple point downward sloping trendline level at 25733.

Six major underperforming MF schemes having higher expense ratios

Six major underperforming MF schemes having higher expense ratios

Mutual funds with a large size of assets under management (AUMs) are supposed to have lower expense ratios. However, there are schemes with large AUMs but having higher expense ratios and generating lower returns. 

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma index has come in as the healer in an otherwise sluggish market. Index has given a consolidation breakout at the 9420 level today and if the it sustains 9420, followed by 9628 on the upside, it has a long way to go.

Ten stocks close to their 52-week low

Ten stocks close to their 52-week low

Following stocks are close to their 52-week low as at 12.35 p.m. on December 27.

Ten stocks close to their 52-week high

Ten stocks close to their 52-week high

The markets on December 27 opened gap down. BSE Sensex is trading at 34,068.15, up by 57.54 points and the Nifty is trading at 10,539.45, up by 7.95 points.

Five stocks with selling interest

Five stocks with selling interest

Overall volumes in futures & options currently stand at 62.75 lakh contracts with a turnover of Rs. 5,19,204.72 crore.