Ranbaxy Labs -Q4 impacted by exceptional items & lower Aricept sales :: Emkay

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Ranbaxy Labs

Q4 impacted by exceptional items & lower Aricept sales

HOLD

CMP: Rs 443                                        Target Price: Rs 396

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n     Ranbaxy’s Q4/CY10 revenues declined 7% YoY to Rs21bn, EBIDTA was down 36% YoY to Rs2.3bn and loss of Rs975mn

n     With 70% price decline and 30% market share for Aricept, Ranbaxy’s US business recorded sales of Rs7bn in Q4CY10 vis-à-vis Rs4bn in Q3CY10

n     Management has guided for CY11 sales of Rs85bn (ex-Lipitor and other FTFs)

n     Maintain Hold with EPS estimate of Rs15.9 for the base business (ex Lipitor and other FTFs) and a target price of Rs396 (18xbase business earnings + Rs110 Para-IV NPV)