Equity Analyst, Sanjay Chhabria is of the view that Indoco Remedies has price target of Rs 450.

Chhabria told CNBC-TV18, "Indoco Remedies is a midsize pharma company manufacturing and marketing branded and prescription formulations and APIs in the domestic market. The company has a well build up brand portfolio of 120 products across various therapeutic segments including high growth lifestyle segments."

He further added, "Some of the companies known brands include, Cyclopam, Febrex Plus, Vepan and Karvol Plus. The top 6 brands of the company are growing at 15% in the domestic market. The company has recently changed its financial year from June to March and so for the 9 months ended March 2008 the company posted a 50% rise in net profits to Rs 30 crore on a 16% rise in the net sales to Rs 263 crore. The trailing 12 month EPS of the company is around Rs 43. So at current level the stock is trading at around 6.3 times expected FY09 earnings."

"My price target for the stock is Rs 450 which would be around 10 times expected FY09 earnings. The company is undergoing a transition phase; it is graduating from Contract Research and Manufacturing Services (CRAMS) to increasing its focus on regulated markets of US, UK and Europe.  In US the company is looking at niche areas of Ophthalmology and dermatology, and it has formed a JV with Amneal Pharmaceuticals and is developing 10 molecules in ophthalmic segment."

Disclosure: Analyst does not hold stock personally, but the subscriber to his newsletter might be holding .