Ranbaxy may shoot 10% in short-term: Jai Bala

Ranbaxy Laboratories can add 10% in the short term , says Jai Bala, Chief Market Technician, Cashthechaos.com.

Bala told CNBC-TV18, "Ranbaxy Laboratories has been moving up with expanding volumes. This is a good sign for the short-term but if you look at the medium-term charts, the stock has dropped from Rs 620 to Rs 420. While the short-term offers very strong upside potential, the medium-term says the stock might get capped about Rs 520-530 but from hereon there could be about 10% rise in the short-term but this should not be interpreted as a trend reversal until the stock takes out Rs 530."

The company's trailing 12-month (TTM) EPS was at Rs 27.26 per share. (Mar, 2011). The stock's price-to-earnings (P/E) ratio was 17.64. The latest book value of the company is Rs 121.65 per share. At current value, the price-to-book value of the company was 3.95. The dividend yield of the company was 0.42%.