IPCA surges after string of broker upgrades

Tags: Ipca, Companies
Shares of IPCA Laboratories Ltd gain 4 per cent to Rs 861.30 after Morgan Stanley initiates coverage on the company with a "buy" rating and a target price of Rs 1,101, calling it its "preferred healthcare mid-cap stock."

Morgan Stanley says that IPCA's growing India business, ramp-up in anti-malaria drugs and increased capacity for the U.S. market should drive 23 percent compounded annual growth in earnings until fiscal 2016, versus an average 16.3 percent for other Indian healthcare stocks in its coverage.

IPCA has received a slew of recent upgrades from foreign banks, highlighting its improving outlook. Shares are up 18.7 percent so far this year, compared with a 3.3 percent gain in the BSE healthcare index and a 3 percent rise in the BSE Sensex.

Last month, Credit Suisse initiated coverage on IPCA with an "outperform" rating, while CLSA upgraded the stock in January to "buy" from "outperform.

EDITORIAL OF THE DAY

  • Because our politicians elbowed out our teachers on Teachers’ Day

    The Swachch Bharat campaign made the highest leaders sweep. Teachers’ Day is making them teach.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Sachin Shridhar

Crouching tiger, hidden dragon

The Chinese are consummate gamblers. If you visit a casino ...

Zehra Naqvi

Capturing change

The pace of change in the world around us can ...

Gautam Gupta

Bring on the Benares brigade

It was in 2003 when I first started work and ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture