Ranbaxy Labs -Base business improves, Maintain Hold ::Emkay

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Ranbaxy Labs

Base business improves, Maintain Hold

HOLD

CMP: Rs 478                                        Target Price: Rs 412

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n     Ranbaxy’s Q1CY11 results were in-line with expectations. Revenue de-grew 21% YoY to Rs22bn, EBITDA de-grew 64% to Rs4bn and APAT de-grew 57% to Rs3bn

n     Adjusted for FTF exclusivity, base business revenues and EBITDA grew 11% and 45% respectively

n     Base EBITDA margins expanded 333bps YoY and 837bps QoQ

n     Maintain hold rating with revised target price of Rs412 (20xbase business earnings + Rs87 Para-IV NPV)