Ranbaxy Intraday Buy Call

Stock market analysts have maintained ‘buy’ rating on Ranbaxy Ranbaxy Laboratories LtdLaboratories stock with an intraday target of Rs 531.

According to them, interested traders can purchase the stock above Rs 525 with a strict stop loss of Rs 521. If the stock market remains positive, the stock pricing becomes more attractive, and reach above Rs 532.
Shares of the company, on Monday (August 4), closed at Rs 524 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 829050. The share price has seen a 52-week high of Rs 613.70 and a low of Rs 299.90 on BSE.

The stock can still exhibit superb surge and it will achieve the target price as the company has strong growth plans and strong operating capabilities.

Decks have been cleared for Japanese major Daiichi Sankyo to buy majority control in Ranbaxy Laboratories. Days after it had deferred the open offer to get hold of an additional 20% stake in Ranbaxy because of ''regulatory hurdles'', the company on August 4, received both Sebi and FIPB approval to go-ahead with the deal.

For the three months period ended june 30, 2008, Ranbaxy Laboratories, on a consolidated basis, announced 7.21% growth in profit after tax.

During the same period, PAT stood at Rs 1530 million, while total sales zoomed 4% to Rs 16,321 million.

Earnings before interest, depreciation, Tax and Ammortization (EBIDTA) surged 32% to Rs 2756 million for the quarter from Rs 2093 million.

In standalone profit, the company registered a substantial drop for the quarter ended June 2008, due to steep rise in operating cost. During the quarter, the profit of the company slumped 91.85% to Rs 237.28 million from Rs 2,911.50 million in the same quarter last year.

Net sales for the quarter increased 19.94% to Rs 12,169.21 million, while total income for the quarter rose 21.73% to Rs 13,244.02 million.

The company reported earnings of Rs 0.64 a share during the quarter, registering 91.81% decline over previous year period.

On July 28, Ranbaxy Pharmaceuticals, a wholly owned subsidiary of Ranbaxy Laboratories, India declared that under a deal with AstraZeneca Pharmaceuticals it has introduced an authorized generic of Omeprazole 40 mg Capsules in the US market.

At its meeting held on July 10, the ESOPs allotment committee of directors of Ranbaxy Laboratories allotted 831,918 equity shares on exercise of stock options under the employees’ stock option scheme(s) of the company.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes Dr. Reddy, Aurbindo Pharma, Dabur Pharma and Glenmark Pharma.