Sun Pharma up as brokers welcome Ranbaxy purchase

Shares in Sun Pharmaceutical Industries gain as much as 7.95 percent, adding to their

RELATED ARTICLES

2.9 percent rise on Monday, as brokers upgrade the stock after Sun agreed to buy Ranbaxy Laboratories Ltd for $3.2 billion.

Sun Pharma is heading for its biggest single-day percentage gain since May 2009. UBS upgraded Sun Pharma to "buy" from "neutral" and raised its target to 720 rupees for 660 rupees on Wednesday, citing the expected contribution to earnings from Ranbaxy.

"We believe the deal makes sense given limited overlap for Sun and Ranbaxy in India and Sun's limited presence in ROW (rest of world) markets, UBS said in a report dated Tuesday, adding Sun would be able to cut administrative and research and development costs.

On Monday, Bank of America Merrill Lynch also upgraded Sun Pharma to "buy" from "neutral", citing a higher price-to-earnings multiple after Ranbaxy's acquisition.

Ranbaxy shares gained 2.2 ercent.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • India must take the UN’s lead in recognising gay rights

    In what has by now become a matter of course, our judiciary again demonstrated that it is miles ahead of our government in terms of staying in tune wi

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

Today's Columns

Urs Schoettli

Lee’s legacy will always guide Singapore

LEE Kuan Yew, the father of modern Singapore, died last ...

Rajgopal Nidamboor

Forget the past and embrace the present

It is all right to believe that one should always ...

Bubbles Sabharwal

Relationships and bitter realities

It’s a tangled web we spin The relationships we make, break ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture