Sharekhan's research report on Ipca Laboratories
Ipca Laboratories Limited (Ipca) reported disappointing results for the quarter and numbers missed estimates. Ipca expects healthy traction in the domestic business to sustain and aims to stage 12% growth for FY2023, while outlook for generics as well as institutional business looks stressed. Dewas plant is expected to commence commercial production with contribution from the plant likely to start by FY2024 and full impact expected by FY2025. Ipca has lowered OPM guidance for FY2023 to 21% as against the earlier guidance of 22.5%. Ipca has reported 17% OPM for Q1FY2023 and guidance of 21% (though lowered) points at implied OPM to be improving in the subsequent quarters as compared to Q1FY2023.
We retain our Hold recommendation with an unchanged PT of Rs. 1,080.
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