Ranbaxy Labs Lipitor ready to strike – Maintain Hold ::Emkay

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Ranbaxy Labs

Lipitor ready to strike – Maintain Hold

HOLD

CMP: Rs475                                        Target Price: Rs513

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n     Ranbaxy’s Q3CY11 results were in-line. Revenue grew 8% YoY to Rs21bn, EBITDA de-grew 29% to Rs1.7bn and APAT de-grew 15% to Rs1.5bn

n     Revenue growth was driven by 44% growth in Europe, CIS, Africa & Russia and 52% increase in API sales. Domestic business grew at a lower rate of 7%

n     Current valuations fully factor - in the future potential of Para-IV opportunities

n     With Lipitor getting ready to strike, we maintain Hold with a target price of Rs513 (20xbase business earnings + Rs82 Para-IV NPV)