Ranbaxy: Attracting attention - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Ranbaxy: Attracting attention

Sep 2, 2000

Ranbaxy has started to attract the market’s attention again. The stock has gone up by almost 15% over the last month. This despite the company declaring uninspiring results in the first half of the current year.

Uninspiring first half
(Rs) 1HFY99 1HFY00 Change
Sales 7,614 8,142 6.9%
Other Income 35 27 -22.9%
Expenditure 6,351 7,072 11.4%
EBDIT 1,263 1,070 -15.3%
OPM 16.6% 13.1%  
Interest 112 7 -93.8%
Depreciation 219 247 12.8%
PBT 967 843 -12.8%
Tax 48 55 14.6%
PAT 919 788 -14%
NPM 12.1% 9.7%  
No of shares 116 116  
EPS 16 14  

Despite a 7% rise in the turnover the company’s net profit has fallen marginally. The reasons for this are not far to seek. Ranbaxy depends a lot on antibiotics with almost 40% of the company’s domestic turnover accruing from this segment. With the segment witnessing heavy competition from unbranded generics, the company’s turnover growth as well as margins have been under strain.

Why then has the stock risen? The market seems to have taken note of an impending $ 5 mn (approximately Rs 225 m) payment receivable from Bayer that is likely to come in the third quarter of the current year.

Also, the company, at an analysts presentation in October 1999 had mentioned that the company was conducting phase I trials for a new chemical entity 'Parvosin' (codenamed RBx 2258) which was for Benign Prostrate Hyperplasia. Dr Brian Tempest, President Ranbaxy Pharmaceutical has also given a statement to the effect that Parvosin is to be launched shortly.

The management in its analysts presentation had also specified that there are three other molecules, one of which was RBx 4638 for respiratory diseases. It is quite possible that some announcement is expected from the company soon.

A further rise in the stock would depend on a positive announcement in the coming month.

Equitymaster requests your view! Post a comment on "Ranbaxy: Attracting attention". Click here!


More Views on News

5 Stocks to Watch Out for Amid the Omicron Outbreak (Views On News)

Dec 3, 2021

As the new variant of Covid-19 emerges, keep an eye on these stocks.

This Stock Just Made a Historical Debut on the Exchanges (Views On News)

Nov 15, 2021

Shares of the company listed at premium of 253% from its IPO price, the highest ever.

3 Indian Pharma Companies that are Investing Big Time for the Future (Views On News)

Nov 9, 2021

In 2021, R&D of pharma companies roared to life in a never-before-seen way.

Demerger of Financial & Pharma Businesses puts Piramal Enterprises in Limelight (Views On News)

Oct 8, 2021

The company's shareholders will be issued 4 shares in the demerged entity for every 1 held in Piramal Enterprises.

Block Deal Disappoints Max Healthcare Shareholders. Stock Falls 6% (Views On News)

Sep 30, 2021

The divestment of 6.6% stake by the promoter is considered to be one of the largest block deals of the market.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

The Biggest Winners and Losers in India's Transition to Electric Vehicles (Profit Hunter)

Nov 26, 2021

How India's EV transition could be a major headwind for the incumbents.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Apr 1, 2015 (Close)


  • Track your investment in RANBAXY LAB with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks