Indoco Remedies jumps after U.S. FDA approves plants

Last Updated: Tue, Jul 22, 2014 09:44 hrs

Reuters Market Eye - Shares of Indoco Remedies Ltd surge 14.2 percent after the company said on Monday that the U.S. drug regulator had approved the company's sterile and solid dosage manufacturing plants located in Goa, paving the way for its ophthalmic product launches in the United States.

This is a significant positive for the company as the sale of products from these plants should contribute 30 percent of Indoco's FY16 operating profit, brokerage Religare said in a report on Monday.

"We expect the stock's discounted multiples (vs. peers) to narrow on strong EPS growth (45% CAGR over FY14-FY17E) and improving return ratios," the note said.

(Reporting by Abhishek Vishnoi)

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