ICICI Direct is bullish on Ipca Laboratories has recommended buy rating on the stock with a target price of Rs 900 in its research report dated February 13, 2019.
ICICI Direct's research report on Ipca Laboratories
Q3FY19 results were a comprehensive beat vis-a-vis I-direct estimates on the profitability front due to strong EBITDA margins (24.5% vs. I-direct estimate of 17.7%). Revenues grew 10.3% YoY to Rs 947.6 crore (I-direct estimate: Rs 939.1 crore) due to 10% growth in domestic formulations to Rs 421.6 crore EBITDA margins improved 569 bps YoY to 24.5% (I-direct estimate: 17.7%) due forex gain, strong gross margins and lower employee cost. EBITDA grew 43.7% YoY to Rs 231.7 crore (I-direct estimate: Rs 166.3 crore) Net profit grew 51.7% to Rs 160.2 crore (I-direct estimate: Rs 107.2 crore) mainly due to a strong operational performance.
Overall, things are looking much stable over the course of the next two to three years both on the revenues and margins front. With growing influence of ex-US segments in earnings, the company will continue to remain a compelling bet at this level given the FY18–21E growth prospects - sales, EBITDA and PAT CAGR of 14%, 18% and 20%, respectively. We arrive at our target price of Rs 900 (17x FY21E EPS of Rs 53.0).
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.
Assembly Election 2019 Results Updates:
Catch Maharashtra Election Result 2019 updates, news and views here
Catch Haryana Election Result 2019 updates, news and views here
Catch Bypoll Results 2019 updates, news and views here
For full coverage, click here.The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .