Hold Ipca Laboratories, says Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "If one looks at the import ban and the statistics involved with the US sales for Ipca Laboratories, FY14 as a perspective, they contributed around Rs 414 odd crore which is 12 percent of the total sales, 20 percent of their exports and if I distinguish between domestic and EPI – its around 61:39 ration. Having said that, couple of their molecules from the Ratlam facility has not been affected by the ban and they probably account around 45 percent of the US sales."

"If you take everything into around probably Rs 214-218 crore odd worth of sales would be impacted overall in terms of topline. However, having said that the kind of bans that have come through will have a sentimental effect and you are seeing that play out on the stock. The kind of timelines that are required to resolve this issues are infinite, so they can extend anywhere between three-six months to a couple of years. Needless to say, the EPS estimates had got downgraded the last time and though our price was very close to the target price that the stock had achieved. We are probably looking at FY17-FY18 numbers. So FY16 numbers will be on the worse side for Ipca with margins coming down," he added.

"If I combine everything into perspective then around Rs 200-214 crore is probably going to get impacted which is not much if I consider the overall topline. So the investor should hold on to the stock. We are very optimistic on the stock from FY17 perspective," he said.