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Accumulate IPCA Laboratories; target of Rs 2369: Dolat Capital Market

Dolat Capital Market recommended accumulate rating on IPCA Laboratories with a target price of Rs 2369 in its research report dated November 09, 2020.

November 12, 2020 / 01:49 PM IST
 
 
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Dolat Capital Market's research report on IPCA Laboratories


IPCA’s Q2FY21 numbers were in line with estimates. While the acute portfolio underperformed in 2Q in India (all-time lows on anti-malarial and anti-bacterial), management guided for a swift recovery in 2H (10% growth guided). Further, despite the cost structure picking up as field activities normalize, IPCA remains confident of sustaining EBITDA margins >25% in 2H. India business is driven by Cardiac and pain franchise (70% of sales). API business is driven by sartan supplies to emerging markets and there is a risk to prices if the global shortage resolves. Institutional tenders and a resumption in the US offer potential upside.


Outlook


At CMP, the stock trades at 24x FY22 and 22x FY23 EPS. We recommend ACCUMULATE on dips.


For all recommendations report, click here


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Broker Research
first published: Nov 12, 2020 01:41 pm

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