Ranbaxy has target of Rs 520-530: Prashastha Seth

Ranbaxy Laboratories has target of Rs 520-530, says Prashastha Seth, Senior VP IIFL Private Wealth, IIFL.

Seth told CNBC-TV18, "Our target price for Ranbaxy is somewhere around Rs 520-530 levels. I think the trigger for Ranbaxy is essentially Lipitor. They would probably get the opportunity to market generate Lipitor and that could substantially add to the earnings of Ranbaxy over the next year or so."
He further added, "Ranbaxy has underperformed most of the pharma companies in the last one year and now with the markets feeling that the threat to Lipitor is not that much. You are seeing some amount of buying happening at Ranbaxy so unless you see further threat in terms of litigation anything like that for Lipitor I think Ranbaxy as a stock would do well. I think what will keep the up move in check is the fact that the domestic operations are still not showing the kind of the growth that you would expect from a company like Ranbaxy. So I would think that Rs 530-540 is where the stock should probably stop."