Ranbaxy: Exports cross target - 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: Exports cross target

Dec 12, 2001

Ranbaxy has announced that it’s two wholly owned subsidiary in the US viz, Ohm Laboratories and Ranbaxy Pharmaceuticals Inc, have already achieved sales in excess of US $ 100 m. This would represent a remarkable growth of more than 65% from the US markets. Cumulatively both the subsidiaries are likely to close the year (Dec’01) with revenues in the range of US $ 105-110 m. It is also for the first time that Ranbaxy’s international operations on a cumulative basis would turn profitable. The revenue mix of the company would tilt heavily in favour of exports. Exports are expected to contribute around 63% of the company’s revenues in the current year as compared to 48% last year.

This outstanding performance seems to be fuelled by generic launch of Ibuprofen (combination) and Lorazepam in September’01. The Ibuprofen combination was the first successful Para IV approval from Ranbaxy’s stable. On the other hand Lorazepam is an anti-anxiety drug with market size close to US $ 400 m.

Other geographies, where Ranbaxy has a direct presence are also logging impressive numbers. With this, the company should be able to complete the current financial year in excess of its target of US $ 600 m in global revenues. An expanding product basket, mature ANDA filings and further penetration in large pharma markets could ensure sustainable growth for Ranbaxy, going forward.

Unlike other pharma companies, Ranbaxy has not restricted itself to the US markets and has positioned itself as an integrated player in the export markets. Again unlike others, Ranbaxy has invested huge sums in creating a direct presence in 25 countries across the globe through various subsidiaries. Apart from US, the company has identified UK, Brazil, China and Germany as its core markets and is working towards penetrating these markets.

We are marginally upgrading our sales target for Ranbaxy in view of this remarkable performance. At the current market price of Rs 757, the stock trades at 26x expected earnings for FY02 (Year ending Dec’01).

Equitymaster requests your view! Post a comment on "Ranbaxy: Exports cross target". 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'.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.


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