Ranbaxy Laboratories has rallied over 6% to Rs 449 on back of heavy volumes on the bourses. The stock opened at Rs 427 and touched high of Rs 450 so far on the BSE.
The counter has seen a heavy trading activity with a combined 3.8 million shares have already changed hands till noon deals against an average sub 2 million shares that were traded daily in past two weeks on the BSE and NSE.
Shares of the pharmaceutical company underperformed the market and its peers due to concerns over legal troubles with the US Food and Drug Administration (USFDA). Ranbaxy Laboratories was down 16% compared to more than 30% rise in Lupin, Dr Reddy’s Laboratories and Sun Pharmaceuticals so far in the current calendar year 2013.
In September, Ranbaxy said, the company's Mohali SEZ unit received an import alert and was subsequently included under certain provisions of the Consent Decree by the USFDA.
"The recent developments with respect to the USFDA’s import alert on the Mohali plant have put the recovery of the company on the backburner; hence the stock could trade at a huge discount to its peers" analyst at Angel Broking in a note dated November 1, 2013.
Hence, after the recent fall in the company’s stock price, there is little left in terms of a further decline fundamentally, he added.
The counter has seen a heavy trading activity with a combined 3.8 million shares have already changed hands till noon deals against an average sub 2 million shares that were traded daily in past two weeks on the BSE and NSE.
Shares of the pharmaceutical company underperformed the market and its peers due to concerns over legal troubles with the US Food and Drug Administration (USFDA). Ranbaxy Laboratories was down 16% compared to more than 30% rise in Lupin, Dr Reddy’s Laboratories and Sun Pharmaceuticals so far in the current calendar year 2013.
In September, Ranbaxy said, the company's Mohali SEZ unit received an import alert and was subsequently included under certain provisions of the Consent Decree by the USFDA.
"The recent developments with respect to the USFDA’s import alert on the Mohali plant have put the recovery of the company on the backburner; hence the stock could trade at a huge discount to its peers" analyst at Angel Broking in a note dated November 1, 2013.
Hence, after the recent fall in the company’s stock price, there is little left in terms of a further decline fundamentally, he added.