Buy IPCA Laboratories; target of Rs 1160: Sharekhan

Sharekhan's research report on IPCA Laboratories

Ipca Laboratories Limited (Ipca) reported weak results for the quarter and the numbers missed estimates. Revenues grew 1.5% yoy to RS 1430.5 cr while the PAT declined 26.3% yoy to Rs 197 cr. IPCA expects the strong traction in domestic business to sustain and aims to outgrow the industry by 1.5x. Dewas plant expected to commence commercial production over the next one year and could improve backward integration levels. Muted performance in the UK, rising cost pressures could act as near term headwinds and drag the performance.

Outlook

Despite near-term cost headwinds, long-term growth levers are intact and hence we retain Buy recommendation on the stock with a revised PT of Rs 1160.

More Info on IPCA Laboratories

At 09:24 hrs Ipca Laboratories was quoting at Rs 959.45, down Rs 7.00, or 0.72 percent.

It has touched an intraday high of Rs 975.10 and an intraday low of Rs 958.25.

It was trading with volumes of 1,619 shares, compared to its thirty day average of shares, a decrease of percent.

In the previous trading session, the share closed down 1.41 percent or Rs 13.85 at Rs 966.45.

The share touched its 52-week high Rs 1,383.55 and 52-week low Rs 893.03 on 15 September, 2021 and 23 February, 2021, respectively.

Currently, it is trading 30.65 percent below its 52-week high and 7.44 percent above its 52-week low.

Market capitalisation stands at Rs 24,341.65 crore.

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