Research Calls: IPCA Laboratories

Motilal Oswal Securities recommend a "Buy" on Ipca Laboratories at a price of Rs 260 with a one-year price target of Rs 345 and a two-year target of Rs 426.

The company's generic export realisations are likely to improve as it gets into better molecules. Promotional market export sales to CIS, Africa and South East Asia are likely to contribute better to overall revenues and margins.

Its Dehradun plant began commercial production from May 2006. It is setting up a Rs 60 crore plant at Indore in the SEZ area, which is likely to begin commercial production by the end of FY08.

The stock trades at 7 times and 6 times its FY07E and FY08E earnings respectively.

Alok Industries

Sharekhan Securities recommends a "Buy" on Alok Industries at a price of Rs 57 with a target of Rs 120. The company's capacities in the apparel fabric segment went on stream in February 2006 and benefit of the same would get reflected in the Q1FY07 performance.

Alok Industries will be a key beneficiary of the increased exports of home textile items from India to the US, as it is expanding its product offerings from bed sheets to terry towels, covering the entire home textile range.

Alok would like to spread its presence in the US apparel fabric market via the inorganic route. The stock is trading at 6 times and 5 times its FY07 and FY08 earnings respectively.