Optimism on Europe, India biz to offset US sales losses for Ipca Labs

Analysts see 13.4% annual growth in domestic business over FY18-21

The Ipca Laboratories stock touched its lifetime high in trade on Wednesday, after brokerages turned upbeat on growth prospects in FY20. 

The optimism regarding the stock hinges on better-than-expected growth in the Indian market, improvement in its European business, and an uptick in the tender business from global multilateral organisations.  

These business segments are expected to offset the revenue loss from its US business, which is dependent on the resolution of USFDA issues related to its Ratlam, Pithampura (Indore) and Silvassa plants. 

Among the main triggers is the India business, which is expected to post growth rates much ahead of peers. Say analysts