IPCA Laboratories jumped 4.18% to Rs 880.50 at 15:08 IST on BSE after a foreign brokerage initiated coverage on the stock with an 'outperform' rating.
Meanwhile, the BSE Sensex was up 161.23 points, or 0.79%, to 20,697.87.
On BSE, so far 30,000 shares were traded in the counter, compared with an average volume of 20,583 shares in the past one quarter.
The stock hit a high of Rs 884 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 846.10 so far during the day. The stock hit a 52-week low of Rs 467.05 on 21 February 2013.
The stock had outperformed the market over the past one month till 20 February 2014, rising 9.03% compared with the Sensex's 3.15% fall. The scrip had outperformed the market in past one quarter, rising 24.06% as against Sensex's 0.48% decline.
The large-cap company has an equity capital of Rs 25.24 crore. Face value per share is Rs 2.
The brokerage cited IPCA Laboratories' sales and earnings growth potential, increasing free cash flow and reduced dependence on lower-margin drug sales. It also cited the company's market leadership in the rheumatoid arthritis segment in India.
IPCA Laboratories' net profit rose 58% to Rs 139.12 crore on 19% increase in total income to Rs 838.37 crore in Q3 December 2013 over Q3 December 2012.
IPCA Laboratories is a pharmaceutical company with a strong thrust on exports, which now accounts for 62% of the company's income. IPCA is vertically integrated and produces finished dosage forms and active pharmaceutical ingredients.
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