Pick of the Week: IPCA Laboratories Ltd.

1. IPCA Laboratories Ltd.
 IPCA Laboratories is an international pharmaceutical company based in Mumbai, India. It is also one of the
largest suppliers of these APIs and their intermediates world over. It produces more than 150 formulations
that include oral liquids, tablets, dry powders, and capsules. The various kinds of drug intermediates that
the company manufactures include Theo bromine, Acetylthiophene, and P- Bromo Toluene and promotes
over 36 countries of Asia, Africa, CIS, and South America, including Cambodia, Kazakhstan, Kenya, Mauritius,
Myanmar, Nigeria, Oman, Russia, Sri Lanka, Sudan, Tanzania, Ukraine, Vietnam and Yemen.
 The main activities of company are to produce and market pharmaceuticals and drugs. The various products
of the company include formulations, drug intermediates, and active pharmaceutical ingredients (API).
 It got certification from US Food and Drug Administration (FDA), UK-Medicines and Healthcare products
Regulatory Agency (MHRA), South Africa-Medicines Control Council (MCC), Brazil-Brazilian National Health
Vigilance Agency (ANVISA) and Australia-Therapeutic Goods Administration (TGA).
 Technical Outlook
 On weekly chart, recently stock has given upper band breakout of its “Downward Falling Channel” with
above average volume shows valid breakout and indicates that stock could give upside move from
present level.
 Furthermore, stock has formed white “Marobozu” candlestick with enough volume on weekly chart,
indicating buyers controlled the price action throughout the week and likely to promote further upside
move with same action.
 As shown in chart, stock has also given breakout of it’s trading range of 635-740 (which is 38.20% &
23.60% Fibonacci retracement level of its previous bull trend from 213 to 903 level), in which it had been
trading for more than 9 months, this shows that a good rally can be seen from present level.
 Momentum indicators RSI has recently given upper band breakout of it’s “Ascending Triangle” pattern,
point out for positive breath in stock.
 Based on the mentioned technical setup we believe the stock could reach towards 900 levels in few
trading sessions.
Company IPCALAB
Recommendation Buy
Sector : Pharma
CMP : Buy at 787 & upto 760
Price Potential : 900
Stop loss (Closing Basis): 730
Mkt Cap (Rs. Cr.): 9,905
TM EPS (Rs) 10.26
TTM Sales (Rs. Cr.) 2883
BVPS (Rs.) 178.47
Reserves (Rs. Cr.) 2227
P/BV 4.40
PE 76.48
Bloomberg Code : IPCA.IN
Reuters Code : IPCA.NS
TM= Twelve months
TTM= Trailing 12 months
SEBI Registered – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Pick of the Week: IPCA Laboratories Ltd.
08th August, 2015
www.choiceindia.com *Please Refer Disclaimer on Website

2. Pick of the Week: IPCA Laboratories Ltd.
08th August, 2015
SEBI Registered – Research Analyst Equities I Commodities I Currencies I Mutual Funds
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person from any inadvertent error in the information contained in this recommendation or any action taken on basis of this information. Technical analysis studies Aprilket psychology, price patterns and volume levels. It is used to forecast future price
and Aprilket movements. Technical analysis is complementary to fundamental analysis and news sources. The recommendations issued herewith might be contrary to recommendations issued by Choice Broking in the company research undertaken as
the recommendations stated in this report is derived purely from technical analysis. Choice Broking has based this document on information obtained from sources it believes to be reliable but which it has not independently verified; Choice Broking
makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. The opinions contained within the report are based upon publicly available information at the time of publication and are
subject to change without notice. The information and any disclosures provided herein are in sumAprily form and have been prepared for informational purposes. The recommendations and suggested price levels are intended purely for trading
purposes. The recommendations are valid for the day of the report however trading trends and volumes might vary substantially on an intraday basis and the recommendations may be subject to change. The information and any disclosures provided
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POTENTIAL CONFLICT OF INTEREST DISCLOSURE (as on date of report) Disclosure of interest statement – • Analyst interest of the stock /Instrument(s): - No. • Firm interest of the stock / Instrument (s): - No.
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Kunal Pamar (Research Associate)
kunal.pamar@choiceindia.com
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Ritesh PatelResearch Associate)
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Date Lot Size
Type of
Call
Equity Initiated SL TGT Result
Profit /
Loss
Total
Profit
06.06.15 1000 Buy BHEL 246.45 225 300 Book Profit @ 259 on 25.06.15 12.55 12550
13.06.15 125 Buy ACC 1370-1400 1330 1550 Book Profit @ 1477 on 23.06.15 77 9625
20.06.15 125 Buy BAJAJ AUTO 2405.6 2300 2700 Book Profit @ 2538 on 26.06.15 132.4 16550
27.06.15 100 Buy TV18 BROADCAST 37.6 33 48 Book Profit @ 41.40 on 06.07.15 3.8 380
04.07.15 500 Buy KOTAK BANK 710-720 670 800-825
11.07.15 250 Buy HDFC BANK 1092.45 1040 1160-1200
18.07.15 100 Buy GICHOUSING 233.6 215 285 Stopped out on 29.07.15 -18.6 -1860
25.07.15 125 Buy HEROMOTOCO 2740 2550 3100 Stopped out on 28.07.15 -190 -23750
01.08.15 100 Buy SPICEJET 27.25-26 23.65 38
Total 13495