ICICI Direct is bullish on Ipca Laboratories has recommended buy rating on the stock with a target price of Rs 1195 in its research report dated August 14, 2019.
ICICI Direct's research report on Ipca Laboratories
Q1FY20 revenues grew 18.4% YoY to Rs 1011 crore (I-direct estimate: Rs 1013 crore) due to 37% YoY growth in APIs to Rs 298.3 crore (I-direct estimate: Rs 247.4 crore). Domestic revenues grew 12.9% YoY to Rs 452.8 crore (I-direct estimate: Rs 449.1 crore). Export formulations grew 9.3% to Rs 244.8 crore (I-direct estimate: Rs 302 crore). EBITDA margins improved 594 bps YoY to 19.3% (I-direct estimate: 22.5%) due to operational leverage. EBITDA grew 71.1% YoY to Rs 195 crore (I-direct estimate: Rs 228 crore). Net profit grew 101.5% to Rs 132.0 crore (I-direct estimate: Rs 154 crore).
The company will continue to remain a compelling bet on the back of well-rounded growth prospects for FY19–21E- sales, EBITDA and PAT CAGR of 14%, 23% and 31%, respectively. We arrive at our target price of Rs 1195 (20x FY21E EPS of Rs 59.7).
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