Karvy Stock Broking has rated Ranbaxy Laboratories as an underperformer with a target of Rs 200 in its January 16, 2009 research report. "Revenues for the quarter are expected to be marginally lower at Rs 18.8 billion on account of USFDA ban. We expect MTM losses to the tune of Rs 1.6 billion for the quarter on accounting outstanding forex loans. We believe the company would report loss of Rs 487 million for the quarter. We believe the US ban and scale up thereafter would take some time before the company regains its past traction."

"We have removed the entire Imitrex upside from our valuation model. We ascribe a value of 15x to the core business of the company and value it at Rs 147. The FTF upside of Rs 5.38 we ascribe a value of 1x while the Nexium upside of Rs 3.2 we ascribe a value of 15x as it is a continuing business and value it at Rs 48. We hence arrive at a value of Rs 200 for the stock and rate the stock as Underperformer," says Karvy Stock Broking's research report.

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