IPCA Laboratories leads BSE Midcap as shares soar to 52-week high; here’s why

In a notable downturn, Indian headline indices suffered substantial declines, with the telecommunications, utilities, metals, and real estate sectors taking the brunt of the damage. The broader market indices experienced a substantial sell-off, with the BSE Smallcap index plummeting by almost 3%. With 729 shares rising on the BSE and 3,051 shares declining, the advance-decline ratio strongly remained in favour of declines.

Amidst a generally bearish market, IPCA Laboratories Ltd emerged as the top gainer on the BSE Midcap index, garnering investor attention with its robust gains. On an intraday basis on Monday, shares of IPCA Laboratories Ltd climbed more than 7%, reaching a 52-week high of Rs 1,008.90 per share on the BSE.

Intense buying activity was observed following the company’s recent announcement regarding its API manufacturing facility located in Ratlam, Madhya Pradesh. The facility received an Establishment Inspection Report, categorising it as ‘Voluntary Action Indicated (VAI),’ signifying that it is now deemed to be in a state of compliance considered minimally acceptable with current good manufacturing practice (CGMP) standards.

Assessing the company’s quarterly performance on a consolidated basis, it achieved a marginal growth of 0.12%, generating a total revenue of Rs 1,587.58 crore in Q1FY24. In a year-on-year comparison with the same quarter in the last year, the net profit for the first quarter of FY24 exhibited a noteworthy increase of 13.81%, rising from Rs 143.06 crore to Rs 162.82 crore. The shares have been on a considerable rally, surging by over 21% in the past six months.

Presently, the company ranks among the world’s largest manufacturers and suppliers of various APIs, boasting manufacturing dominance in more than 12 APIs on a global scale. With a network of 15 APIs and 11 Formulation manufacturing facilities worldwide, it also holds a prominent position in India’s market with leading brands in Pain, Rheumatology, Antimalarials, and Hair care therapy.

Keep a close eye on this stock for the upcoming trading sessions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.