The Hindu Business Line : Ranbaxy remains in limelight

According to brokers and analysts, given that generics account for a major chunk of the company's business, the VAT implications for the company are practically nil.

"The very fact that it has held its own in an otherwise volatile market, is proof of the inherent strength in the counter. Besides, it is an aggressive stock with a decent amount of liquidity. This coupled with a stream of positive news flow is reason enough to stay invested in the stock," a broker from a leading broking house said.

"Going forward, there are three products in the pipeline - Ceftin, Augmentin and Isotiretinion — that is going to keep the cash flow ticking for this fiscal," an industry watcher commented.

Analysts maintain that 2002 and 2003 are very good for the company. "The company is likely to post a 100 per cent growth in its net profit on the year-on-year basis, though the quarter-to-quarter earnings are likely to be relatively flat. Revenue for the first quarter of the current fiscal should be around Rs 800 crore which translates into around 45 per cent growth on year-on-year. and 3.5 per cent growth quarter-on-quarter, an analyst said. Added to this is Ranbaxy's Cipro deal with Bayer that kept royalty payments flowing in since January this year.

Market participants expect profit booking at the counter a few days shy of the company announcing its results on April 29.

On the BSE, the stock ended the day at Rs 683.90 up 2.81 per cent with around 1.6 lakh shares. On the NSE, the stock was quoting at Rs 684 up 3.18 per cent with around 5.1 lakh shares traded at the counter.

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