IPCA Labs: Strong margins to sustain even post-COVID opportunities
In spite of the extraordinary sales of Hydroxychloroquine in FY21, IPCA Labs expects a 9-10 per cent growth in topline for FY22
June 02, 2021 / 10:36 AM IST
Themis Medicare | CARE has upgraded long term credit rating on the company's bank facilities to B+/Stable, from B/Stable.
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
IPCA Labs’ (CMP: Rs 2,066, Market Cap: Rs 26,197 crore) quarterly performance was a disappointment on the domestic formulations side. However, post interaction with the management, weak performance in the quarter gone by appears to be an aberration and medium-term growth for domestic formulations remains closer to mid- teens.
The key near-term challenge, however, is capacity constraint for APIs (active pharmaceutical ingredients). This should be suitably addressed by a mix of de-bottlenecking and greenfield projects within a year.
Overall, we remain...