Ipca labs can test Rs 450: PN Vijay

Ipca labs can test Rs 450 in about 15 to 18 months, says PN Vijay, Portfolio Manager.

Vijay told CNBC-TV18, "Ipca labsQ4 numbers are way above expectations. We expected good numbers from Ipca Labs but the numbers were really tremendous. What is happening with Ipca Labs is that they have feet firmly in two territories, which are similar to companies like Lupin or Cadila. One is their domestic formulations, which are getting quite robust and where they are very strong in the anti-malarial segment."
He further added, "Apart from that, their overseas formulation, they have a huge market in Russia. So that export of formulation is very robust as is their export of generics. The earnings performance has been excellent. It is a very well run pharma company. I think at Rs 300 levels it could give you a very strong push up, probably, to about Rs 450 in about 15 to 18 months and I do not see any great downside. There is no big debt in the market, there is no US Fed FDA case against them etc which one really needs to watch out in pharma companies." Disclosure: It can be assumed that the stocks recommended are in the proprietary portfolios and/or client portfolios managed by the co.