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Nifty recoups day’s losses…broader market outperforms
Shares of Strides Arcolab shot up by over 4%. Commenting on the recent acquisition, Amar Ambani, Head of Research, IIFL, said, “Strides Arcolab and Sun Pharma entered into an agreement whereby ‘Solus Care’ of erstwhile Ranbaxy would be acquired by Strides. We note that the deal value at <2x sales is much lower than that paid in other buyouts viz Torrent Pharma and Elder branded formulations and would add ~3% to Strides’ FY16E revenues. The deal would significantly scale up Strides’ India business. We keep estimates unchanged for and reiterate our conviction on Strides as top pharma bet with 9-12mth.”