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Monday, August 12, 2013

Ranbaxy Laboratories: US FDA and DPCO Issues Underline but Analysts Optimistic about Recovery

A number of reasons govern why Ranbaxy is up by 35% even after posting Q2 loss. Can Ranbaxy be a Long-term Parking Slot for Investors? Present Picture Amid plummeted sales of Ranbaxy Laboratories , opinions about the evergreen stock have been pouring in. Experts have been bullish about Ranbaxy shares irrespective of the decline in its net sales and EBITDA in the second quarter of 2013. Probably the reason attributed for the same is that it has fared well than the expectations in the second quarter. EBITDA margin in this quarter was 9.8% which turned out to be higher than the expected value of 8%. The company has witnessed a surge of 23.6 percent in sales of North America on a quarterly basis. Reason behind Low Operating Margin Levels: Ranbaxy has been involved in recuperating its Dewas and Paonta Sahib plants. The trigger behind the same is that the company needs to fulfill the parameters governed by the US FDA. So, this has been eventually obviating a surge in operating margin levels

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