Global brokerage Nomura has announced its decision to upgrade the shares of Indian pharmaceutical firm, Ranbaxy to a 'buy' from 'neutral'.

The brokerage has set a target price of Rs. 475 for the 12 month period. Analysts said that the upgrade comes after the company's management's interaction. India's leading drug-maker, which is controlled by Japan's Daiichi Sankyo, said in February its core business is expected to grow by 10 per cent during 2013.

The company had recorded a net loss of of Rs. 492 crore during the fourth quarter till December 31, 2012 mainly due to voluntary recall of atorvastatin and mark-to-market loss, after setting aside Rs. 186 crore towards recall costs. The company had recorded a loss of Rs 2,983 crore during the same quarter of the previous year.

The company had recalled batches of Atorvastatin in November 2012 saying that it could contain small glass particles measuring less than 1mm in size. The Atorvastatin drug, which is the generic version of Pfizer's Lipitor, controls a dominant market share in the market and earns high margins for the company.

The shares of the company were trading 2.07 per cent higher at Rs. 411.25after touching a high of Rs. 412.25 this morning at the time of reporting.