Sharekhan is bullish on Ipca Laboratories has recommended buy rating on the stock with a target price of Rs 2365 in its research report dated August 11, 2020.
Sharekhan's research repor on Ipca Laboratories
IPCA Laboratories Limited (IPCA) reported an impressive performance for Q1FY2021. Revenues at Rs 1534 cr grew 43.2% YoY, OPM expanded remarkably by 1983 BPS YoY to 38.3%. PAT at Rs 445 cr was up 243% yoy. IPCA sees double digit growth trajectory to sustain for both API and Formulations segment. It has marginally revised its revenue growth guidance upwards to 18-19% as compared to 14-17% earlier. Resolution of USFDA issues at the Pithampur and Pipariya plant is critical and upon successful resolution can lead to earnings upgrades. Strong earnings prospects amidst uncertain times, a sturdy balance sheet and healthy return ratios augur well for IPCA.
We retain our Buy recommendation on the stock with revised PT of Rs 2365.
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