Ranbaxy stock spurts over 5% in early trade

Shares of Ranbaxy Laboratories jumped by over 5% in morning trade on the bourses today after the company posted a better-than-expected profit of Rs 304.4 crore for the first quarter ended March 31, 2011.

The scrip of the country's biggest drug-maker rose by 5.37% to touch an early high of Rs 473.25 on the Bombay Stock Exchange (BSE).

In a similar fashion, the stock zoomed up by 5% to touch a high of Rs 472.90 on the National Stock Exchange.

On the volume front, over 26 lakh shares of the company were traded on the two bourses within the first few minutes of trade.

"The results have matched the streets expectations, which are definitely better-than-expected, that is why the stock is seeing buying interest by the investors," Ashika Stock Brokers Research Head Paras Bothra said.

The drug major yesterday posted a consolidated profit after tax (PAT) of Rs 304.4 crore for the first quarter ended March 31, 2011.

The company's PAT for the quarter is significantly lower than the Rs 960.6 crore that it had posted in the same period previous year.

However, the figures were not comparable as it had witnessed a significant jump in sales in the same period last year through the launch of antiviral, Valacyclovir with 180 days of exclusive marketing rights in the US in the last quarter of 2009.

The results were announced after the market close yesterday.

Meanwhile, the BSE benchmark Sensex was trading flat at 18,521.50 at 1048 hours.