Ranbaxy Intraday Buy Call

Karvy Stock Broking Limited has maintained ‘Buy’ rating on Ranbaxy Laboratories stock with an intraday target of Rs 430.

According to Karvy, day traders can purchase the stock above Rs 412 with a strict stop loss of Rs 405. If the stock market remains on positive track, the next target for the day will be above Rs 435.

Shares of the company, on Tuesday (July 15), closed at Rs 409.25 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 7189255. Current EPS and P/E stood at 16.38 and 26.58 respectively. The share price has seen a 52-week high of Rs 613.70 and a low of Rs 299.90 on BSE.

The outlook for the stock is really very strong, and it is expected to rise on the back of huge volumes.

Ranbaxy is now making cautious efforts to expand its market share, develop its business, regulates its asset quality and lay more pressure on customer service to perk up its profile and combat increasing competition.

On July 11, 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.

CARE, a leading credit rating agency has assigned `PR1+` rating to the short term bank facilities availed by Ranbaxy. This rating is valid for facilities having tenure up to one year.

The company considered Ranbaxy’s plan to flourish into highly profitable niche sectors including oncology, limuses, peptides etc. The rating also factors in vertically integrated operations of the company, strong R&D capabilities and its strong pipe line of Abbreviated New Drug Applications (ANDAs) including First to File (FTF) applications.

Ranbaxy Labs has received tentative approval from the USFDA for Valganciclovir Hydrochloride tablets, used for the treatment of CMV retinitis in patients with AIDS.

The company will carry on acquiring companies so as to develop the business.

Earlier this month, Japan based, Daiichi Sankyo signed a binding agreement to buy Ranbaxy promoters` 34.8% stake in Ranbaxy Laboratories for around USD 4.6 billion.

Other stocks from the same sector that looks good for short-term trading includes Sun Pharma, Cipla, Glenmark and d Dr Reddys Labs.

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