Angel Broking has maintained 'Accumulate' on Ipca Laboratories with target price of Rs 886 in its report.
Ipca Labs proposed to issue employee stock ownership plans (ESOPs) at a discount to market price. The new ESOP scheme could impact the earnings per share of the
company by 2-3%.The company is currently seeking the shareholder approval for the proposed ESOPs scheme.
Commenting on the investment rationale, the stock broker said, ''For, FY2015, company is expected to post an 18-20% yoy growth in revenue and maintain margins at current levels of 24%, but if rupee strengthens from current levels of 59.50-60/USD, then there could be some risk to that percentage. We maintain our accumulate with a price target of Rs 886.''
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