Vivek Kumar, SBI Cap Securities advice traders to buy Ranbaxy Labs for target of Rs 620-630.
Kumar told CNBC-TV18, “Most of the worst is behind for the Ranbaxy at this point in time and given the near-term triggers in the form of techno launches which is scheduled for December end, some of the positive commentary coming on.”
He further added, “This stock is not being purely valued at this point in time. So I think you can still look at stocks running upto Rs 620-630 and that is where I think we are looking at in terms of the target price and we still have a buy rating on this stock.”
“Sun Pharmaceutical has also delivered quite strong numbers because if I look at the margins, they have delivered more than 43 percent, I think street was also around 41 percent and we were expecting around 42 percent, so I believe overall on the topline also they have delivered in excess of 20 percent kind of growth and it is still going to be taking in terms of a positive thing by the street. If you look at the profit also, I think they have delivered around – adjusting for the exceptions that they have done around Rs 550 crore is the part of the provisioning or a claim on the Protonix, they have created that provision during the particular quarter. So adjusted for that, I think Rs 890-900 crore is definitely very strong number that has been delivered.”