IPCA surges after string of broker upgrades

Reuters Market Eye - Shares of IPCA Laboratories Ltd gai after Morgan Stanley initiates coverage on the company with a "buy" rating and a target price of 1,101 rupees, calling it its "preferred healthcare mid-cap stock."

Morgan Stanley says that IPCA's growing India business, ramp-up in anti-malaria drugs and increased capacity for the U.S. market should drive 23 percent compounded annual growth in earnings until fiscal 2016, versus an average 16.3 percent for other Indian healthcare stocks in its coverage.

IPCA has received a slew of recent upgrades from foreign banks, highlighting its improving outlook. Shares are up 18.7 percent so far this year, compared with a 3.3 percent gain in the BSE healthcare index and a 3 percent rise in the BSE Sensex.

Last month, Credit Suisse initiated coverage on IPCA with an "outperform" rating, while CLSA upgraded the stock in January to "buy" from "outperform.

IPCA shares were up 4.1 percent to 862 rupees as of 1.47 p.m.

(Reporting by Abhishek Vishnoi)