Buy Ipca Labs; target of Rs 393: Angel Broking

4720 Investors following Ipca Labs. Share this News with them.

0

Like this story, share it with millions of investors on M3

Buy Ipca Labs; target of Rs 393: Angel Broking

Angel Broking is bullish on Ipca Labs and has recommended buy rating on the stock with a target of Rs 393 in its January 31, 2012 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Buy NTPC; target of Rs 199: Emkay Accumulate Prestige Estates; target of Rs 103: PLilladher Buy Sterlite Ind; target of Rs 138: Angel Broking ALSO READ See previous views by Angel Broking See what other Experts & Brokerages are saying about Ipca Labs See messages about Ipca Labs Ipca Labs BSE | NSE 31/05/12 Are Mutual Funds betting on Ipca Labs?

Angel Broking is bullish on Ipca Labs and has recommended buy rating on the stock with a target of Rs 393 in its January 31, 2012 research report.

"For 3QFY2012, Ipca Labs (Ipca) reported better-than-expected results. The top line grew by 29.9% yoy to Rs602cr, just in-line with our estimates. Also, OPM came in higher than expected at 23.0%. This also resulted in adjusted net profit growth coming in at 97% yoy, ending the period at Rs104cr. However, including non-cash forex expenses, net profit came in flat. We recommend Buy on the stock."

"Ipca reported net sales of Rs602cr, up 29.9% yoy, just in-line with our estimate of Rs588cr. The company posted OPM of 23.0% vs. expected 20.6%.Recurring profit came in at Rs104cr, higher than our estimate of Rs53cr. Segment wise, for 3QFY2012, the overall formulations business grew by 38.5% to Rs477cr (Rs345cr), contributing 79.0% to the company's total revenue. The API business witnessed 4.8% growth during the quarter to Rs124.4cr, contributing 20.7% to the total revenue. Adjusted net profit for the quarter grew by 97% yoy to Rs104cr."

"We expect net sales to post a 22.4% CAGR to Rs2,907cr and EPS to register a 36.9% CAGR to Rs32.7 over FY2011-13E, driven by the U.S. and domestic markets and the API segment. At current levels, the stock is trading at 11.2x and 9.1x FY2012E and FY2013E earnings, respectively. We recommend Buy on the stock with a revised target price of Rs393," says Angel Broking research report.       

Public holding more than 90% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment