Stock watch: Ranbaxy labs

Domestic pharma major, Ranbaxy has been witnessing choppy trades ever since the announcement of it's June quarter results.

While the results were nothing to write home about, punters are eyeing the stock in anticipation of some positive development.

The buzz is that Ranbaxy is in advanced stages of acquiring a south-based domestic pharma firm. A dealer with a domestic broking firm said, "As far as results are concerned, the worst seems to be over. There has been renewed interest at the counter in anticipation of a domestic or a overseas buyout."

The stock hit an intra day high of Rs 514 on Wednesday, before closing at Rs 500.95, down 1.3 per cent from its previous close. On Tuesday, the stock had gained over 9 per cent on back of strong volumes of more than 7 lakh shares on BSE alone.

The company announced that it has received tentative approval from the US Food and Drug Administration to manufacture and market Sumatriptan Succinate Tablets. Total annual market sales for March 2005 for Sumatriptan Succinate Tablets were pegged at $857 million, up 2.8 per cent y-o-y.

The company posted a profit after tax of Rs 76.49 crore for the quarter ended June 30, 2005 as compared to Rs 184.95 crore for the quarter ended June 30, 2004.

Total income (net of excise) increased from Rs 958.16 crore to Rs 1007.35 crore during the same period.