Ranbaxy looks expensive: IIFL Capital

Ranbaxy Laboratories is looking expensive at these levels, says Bino Pathiparampil, Vice President of IIFL Capital.

Pathiparampil told CNBC-TV18, "Ranbaxy stock has corrected quite a bit but even at these levels pure fundamental valuation looks expensive on the stock but having said that the expectation of a large income that could come in the later part of this year and early next year from Lipitor generic could lead to the stock holding at the very rich valuations also. So from hereon I think the returns on the stock would be driven by expectations and incremental news flows on generic Lipitor launch in the US." The company's trailing 12-month (TTM) EPS was at Rs 27.27 per share. (Dec, 2010). The stock's price-to-earnings (P/E) ratio was 16.79. The latest book value of the company is Rs 93.99 per share. At current value, the price-to-book value of the company was 4.87.