Ipca Labs up 2% on JP Morgan overweight report

Ipca Laboratories rose as much as 2 percent in early trade on Thursday as the research firm JP Morgan has put an overweight rating on the stock with a target price of Rs 600.

"While earnings were marginally below expectations, the stock is trading at a 20 percent discount to the sector average, which is likely to narrow driven by steady earnings growth and scaling up of operations," JP Morgan reasoned.

Net profit of the healthcare firm increased 37.5 percent year-on-year to Rs 88 crore while total income went up by 14 percent YoY to Rs 701 crore in the third quarter of financial year 2012-13.

Ipca Labs reported a foreign exchange loss of Rs 18.6 crore in the October-December quarter as against loss of Rs 40 crore in a year ago period.

At 10:13 hours IST, shares moved up 0.61 percent to Rs 482 on Bombay Stock Exchange.

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