USFDA approval & dividends keeps traders interested in Indoco remedies

Indoco remedies on Wednesday had received the US FDA nod for its manufacturing facility in Goa. Indoco has received the establishment inspection report (EIR) from US Food and Drug Administration (US FDA) for its Goa Plant II. The Goa plant will be primarily a sterile and solid dosages facility situated in Veran Industrial Estate in Goa. 
The company board meeting is scheduled to be held on 27th of May on Friday. The board may recommend final dividends in the meeting. The stock is down by 2.80 percent on Thursday and is trading at Rs.291.50 per share on intra-day basis at the time of filing this report. On Wednesday the stock gained almost 12 percent on the US FDA news managing to close the day's trade at Rs. 299 per share. 

Indoco remedies is active in manufacturing and marketing of formulations and Active Pharmaceuticals Ingredients (APIs) in India. With it strong international presence in the regulated and emerging markets the company is striving to expand its business strategically by strengthening its manufacturing facilities and enhancing capabilities across the organisation. 

Indoco has a well built brand portfolio of 135 products in various segments including high growth life style segments as Anti-Diabetics, Cardiovascular, Central Nervous System, Musculo-Skeletal, Nutrition and Dental Care.  Indoco has good market visibility in European markets, USA, Asia, Africa, Latin America and other CIS countries. For Indoco there are number of products that have emerged as brand leaders in both Indian and International markets.

The stock is taking resistance at its 200 days simple moving average of Rs. 302. At 291 the stock is trading below its 200 days simple moving average. Over 1 year period the stock is down by almost 25 percent, thus under performing the broader market.