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
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.
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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