Ranbaxy Laboratories an underperformer: Karvy

RELATED NEWS Cadila Health an outperformer: Karvy Buy Torrent Pharma, target of Rs 200: Karvy Buy Lupin, target of Rs 875: Karvy Sun Pharma an outperformer: Karvy ALSO READ See previous views by Karvy Stock Broking See what other Experts & Brokerages are saying about Ranbaxy Labs See messages about Ranbaxy Labs Ranbaxy Labs BSE | NSE 10/02/12 Are Mutual Funds betting on Ranbaxy Labs?

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.

Disclaimer: The views and investment tips expressed by investment experts 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 on the attachment......