Nov 30, 2012, 03.17 PM | Source: Moneycontrol.com
Emkay Global Financial Services is bullish on Ranbaxy Laboratories and has recommended buy rating on the stock with a target of Rs 590 in its November 8, 2012 research report.
, Emkay Global Financial Services |
“Ranbaxy Laboratories, US business (contr. 32%) grew 81% YoY to US$152mn led by 54% growth in base business ($129mn) led by strong growth in Lipitor & Caduet. Actos which was launched on 17th Aug’12 contributed $23mn this quarter. India business (contr. 22%) grew 13% YoY on back of growth in the chronic segment and MR addition. Company continues to feel pressure in acute segment. Other territories (contr. 46%) declined 18% YoY to US$223mn on account of depreciation of local currencies. Actos has captured 25% market share in US. Price erosion has been in the range of ~75% post the entry of Watson.”
“Ranbaxy is on track to launch 4 big products in US viz. Diovan (Sep’12), Tricor (Dec’12), Absorica (Q4CY12) and Ximino (Q1CY13). Upsides from Tricor, Absorica and Ximino are not built-in our estimates. India growth is expected to accelerate to 16% going ahead on back of increasing focus on chronic therapies and higher MR productivity. Current MR strength is 7500 Base business is expected to grow by 33% in CY12 and 14% in CY13 on back of atorvastatin launch in emerging countries, Nexium supplies to Teva and improvement in India business. Margins will therefore expand 400bps in CY12 & 200bps in CY13.”
“We expect Ranbaxy to report 33% growth in base business revenue in CY12E and 14% in CY13E. Base EBIDTA margins are expected to increase from 8.2% in CY11 to 12.4% in CY12E & 14.6% in CY13E. Base Earnings are expected to register 24% CAGR over CY11-13E to Rs11.5bn clocking an EPS of Rs27 in CY13E. We maintain buy on the stock with a target price of Rs590 (20x CY13E base EPS of Rs27 and NPV of Rs42),” says Emkay Global Financial Services research report.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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.
To read the full report click here
Speaking to CNBC-TV18 Dhananjay Sinha, Head, Insti
US GDP numbers have also come in strong. This sign
The Indian economy may have improved considerably