Unicon Financial has revised its target price of drug maker Ranbaxy Laboratories to Rs. 515 with 'hold' rating. 

It's latest report says that Ranbaxy has reported lower than estimated Q3CY11 results. The top line came in at Rs. 2022.8 crore posting a growth of 7.7% on YoY basis mainly backed by Europe, CIS, and Romania & Africa region business. The operating margins showed a marginal expansion of 38 bps. There was high growth in other income backed by milestone payments and export benefits. Operating profit (Ex. OI) reported a growth of 15.4% YoY. 

Unicon has mentioned that Ranbaxy's performance has been under stress for past 3 quarters. But it says that the domestic business is expected to have a healthy upside backed by revenue from project Viraat. Apart of that, launch of Lipitor in November 2011 is expected to give a ramp up to the revenue in the coming quarters. However, the anticipated opportunity gain has already been factored in the current price of Ranbaxy, says the broking firm. Also, competition from peers is expected to hamper certain therapeutic segments like Anti Infectives & Gastro. Currently the stock is trading at 13.2x CY12E earnings, as per the report. (Share Manthan, November 15, 2011)