Ranbaxy Laboratories Ltd - In-line Results, Robust Outlook - Maintain Buy - Emkay

Reco: BUY
CMP: Rs 502
Target Price: Rs 559

- Q1CY12 Results - Revenues at Rs32.3bn (up 54% YoY), EBITDA at Rs9.85bn (up 4.4x) and APAT at Rs3.8bn (up 1.5x). Lipitor & Caduet contributed ~USD170mn in revenues.

- Base revenues grew 13% and margins expanded 492bps YoY to 11% due to INR dep. and atorvastatin launch in Australia , Europe & improvement in India biz.

- Going forward, Ranbaxy is on track to launch 5 big products in US viz. Actos (Aug'12), Diovan (Sep'12), Tricor (Dec'12), Absorica (Q4CY12) and Ximino (Q1CY13).

- With strong product pipeline in US & strengthening India business, we maintain Buy on the stock with a target price of Rs559 (20x CY13E base EPS of Rs27 and NPV of Rs16).

Source : Equity Bulls

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