Markets
BSE See NSE See 39,434.94
311.98 (0.8%)
collapse Related Readings collapse

IPCA Laboratories: Recommendation Review

| 1/10/2013 9:00 PM Thursday

The pharma sector has been in the news in recent times, thanks to many of the companies in the sector reporting developments on various fronts. That apart, this sector has always been a defensive one, and selecting the right stocks therein aids in strengthening the capability of your portfolio to withstand market volatility. One such scrip that we had recommended in our Choice Scrip section in DSIJ Vol. 27, Issue No. 20 was IPCA Laboratories (dated 23rd September, 2012), when the scrip was trading at Rs 442. The company’s strong USFDA product pipeline, surging export revenues and improvement in its EBITDA margins were reasons why we felt that investors should hold this stock in their portfolio.

IPCA Labs has recently received approval from the World Health Organisation (WHO) for its anti-malarial formulations, which have further fuelled the bullish sentiment on the stock. It has already seen a strong surge in the revenues from anti-malarials in FY12, and the approval from WHO would further bolster its earnings on that front. This, along with its other fundamental strengths, reinforces our conviction in the company and its stock.

Its US revenues are a major growth driver for IPCA, and have been contributing strongly to its topline. Going forward, revenues from the US are expected to be strong on the monetisation of the 12 approved ANDAs.

Another factor that keeps the stock in focus is that the company has received USFDA approval for its Indore SEZ facility. The management expects about USD 100 million (about Rs 550 crore) revenues a year from this new facility when used at the optimum level. To rake in higher revenues, the company has moved five growth products from its Silvassa facility to Indore facility, which would also lead to improved margins.

The scrip has performed exceedingly well and at its CMP of Rs 522, it is currently providing returns of 18 per cent. We suggest that investors book profits in the scrip at the current levels, at least to the extent of 50 per cent of their holding.

 

Find More Articles on: DSIJ Magazine, Reviews, Stock Recommendations, Fundamental Picks, Product, Large Cap

news letter

More for the early bird.

Get the post-market reports and breakfast news right in your inbox. See latest »

DSIJ Mindshare

Torrent Power shines on the bourses

Vinayak Gangule / Article rating: 5.0

Torrent Power sparked in Tuesday’s trading session as it informed bourses that it has received an approval from Gujarat Electricity Regulatory Commission (GERC) for the power procurement arrangement of 278 MW between the company's UNOSUGEN Power Plant (capacity of 382.5 MW) and its Licensed Distribution Business for cities of Ahmedabad, Gandhinagar and Surat.

12345678910Last

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Logistics sector will play a vital role in making the concept of ‘Make in India’ a success. This will be further aided by some of the recent steps taken by Government of India such as granting of infra sector status to logistics sector.

Best and worst Performing Sector Funds of Year 2017

Best and worst Performing Sector Funds of Year 2017

As the year-end has approached most of you are eager to know the mutual fund movers and shakers of the year 2017. Read on to find the performance of various sector dedicated funds.

Markets may start positive, but volatility likely due to F&O expiry

Markets may start positive, but volatility likely due to F&O expiry

The start of the F&O expiry day is likely to be in the green, but volatility may creep in with the progress of the session. The SGX Nifty suggests that the Nifty could open at 10,525 with gains of 32 points at the opening bell. 

Pidilite announces buyback of Rs 500 crore

Pidilite announces buyback of Rs 500 crore

The buyback offer comprises purchase of up to 50,00,000 equity shares. The buyback offer size comprises 0.975 per cent of the total paid-up equity capital of the company.

Bank Nifty drags markets to close in the red

Bank Nifty drags markets to close in the red

The late session fall in Bank Nifty changed the direction of the market, leading to a marginal fall in the benchmark indices. Bank Nifty yet again resisted at its multiple point downward sloping trendline level at 25733.

Six major underperforming MF schemes having higher expense ratios

Six major underperforming MF schemes having higher expense ratios

Mutual funds with a large size of assets under management (AUMs) are supposed to have lower expense ratios. However, there are schemes with large AUMs but having higher expense ratios and generating lower returns. 

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma index has come in as the healer in an otherwise sluggish market. Index has given a consolidation breakout at the 9420 level today and if the it sustains 9420, followed by 9628 on the upside, it has a long way to go.

Ten stocks close to their 52-week low

Ten stocks close to their 52-week low

Following stocks are close to their 52-week low as at 12.35 p.m. on December 27.

Ten stocks close to their 52-week high

Ten stocks close to their 52-week high

The markets on December 27 opened gap down. BSE Sensex is trading at 34,068.15, up by 57.54 points and the Nifty is trading at 10,539.45, up by 7.95 points.

Five stocks with selling interest

Five stocks with selling interest

Overall volumes in futures & options currently stand at 62.75 lakh contracts with a turnover of Rs. 5,19,204.72 crore.