Buy Ranbaxy Laboratories; target of Rs 428: P-Sec

Broking house, P-Sec is bullish on Ranbaxy Laboratories and has recommended buy rating on the stock with a target of Rs 428.

P-Sec report on Ranbaxy Laboratories:

"Ranbaxy has received USFDA approval to manufacture and market cefprozil indicated for the treatment of infections caused by tonsillitis, acute sinusitis, bacterial infections and skin-structure infections. Cefprozil has been determined to be bioequivalent and having same therapeutic effect as that of brand Cefzil of Bristol Myers and the estimated annual market size is USD 76.6 mln."

"The company expects to launch the formulation early 2007. At CMP of Rs.370, the stock is trading at 24x CY06E and 20x CY07E earnings. Recent correction has made the valuations attractive, we maintain buy on the stock for a target price of Rs 428."