Ranbaxy Laboratories Ltd - Turnaround possible, but too early to count the chickens - Emkay

Reco: HOLD
CMP: Rs 434
Target Price: Rs 447

- Recently, we met Ranbaxy management for an update on the status of key awaited approvals and progress on the resolution of plants under import alert

- Near-term pain due to a lack of new approvals and high costs of remediation persist. Management expects longer-term outlook to be strong

- Consent Decree costs to taper off beginning CY15E. FTFs monetization plans in place. Long-term synergy benefits from Daiichi in ROW markets to drive growth

- Although we feel a turnaround story is in the making, near-term uncertainties are multi-fold. We retain a Hold rating on the stock, with a target price of Rs447.

Source : Equity Bulls

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