Webinar :Register now for Commodity Ki Paathshala webinar on ‘FPOs & Agriculture Marketing-The Beginning of a New Era’ on January 22, 4pm

Buy Ipca Laboratories; target of Rs 1750: Sharekhan

Sharekhan is bullish on Ipca Laboratories has recommended buy rating on the stock with a target price of Rs 1750 in its research report dated June 17, 2020.

June 18, 2020 / 06:26 PM IST
  • bselive
  • nselive
Todays L/H

Sharekhan's research report on Ipca Laboratories

IPCA labs reported a weak performance for Q4FY2020. Revenues grew 22% yoy to 1073.8 cr aided by a strong growth in both API and formulations segments. OPM’s contracted due to higher employee cost and other expenses. PAT at Rs 86 cr decline 12.8% and missed estimates. IPCA expects both – API and formulations business to grow at a healthy pace and has guided for a 14-17% topline growth and 100-150 BPS margin expansion. Favorable mix, operating leverage and stable input prices to drive OPM expansion. IPCA’s Sales and PAT are expected to grow by 16% and 31% CAGR over FY2020-FY2022. Strong earnings prospects, a sturdy balance sheet and healthy return ratios augur well for IPCA.


We retain Buy recommendation with an unchanged PT of Rs 1750. Resolution of USFDA issues at the Pithampur and Pipariya plant is critical and upon successful resolution can lead to earnings upgrades.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Jun 18, 2020 06:26 pm

stay updated

Get Daily News on your Browser