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Hold Ipca Laboratories; target of Rs 1000: ICICI Direct

ICICI Direct recommended hold rating on Ipca Laboratories with a target price of Rs 1000 in its research report dated May 26, 2022.

May 30, 2022 / 04:45 PM IST
 
 
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ICICI Direct's research report on Ipca Laboratories


Ipca is a fully integrated pharma company manufacturing over 350 formulations and 80 APIs with exports contributing 50% of revenues in FY21. Major therapeutic segments include pain management, cardiovascular and anti-diabetics, anti-infectives, anti-malarials, which together account for 75% of revenues • Revenue break-up FY22 – Formulations:69% (Domestic:43%, Export:26% - Export Generic:13%, Export Institutional:5%, Export Branded:7%), API:23% (Export API:17%, Domestic API: 6%), Subsidiaries: 7%.



Outlook


Downgraded from BUY to HOLD due to challenges in exports generics and delay in traction from API exports along with some margin pressure in medium term due to MR addition and Fuel / Logistics expenses. Valued at Rs 1000 i.e. 25x P/E on FY24E EPS of Rs 39.9.

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first published: May 30, 2022 04:45 pm
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