Sharekhan's research report on Ipca Laboratories
Ipca Laboratories Limited (Ipca) reported weak results for the quarter and numbers missed estimates. Revenue grew by 15.5 y-o-y, while PAT declined by 19% y-o-y. Ipca expects strong traction in the domestic business to sustain and aims to stage 10-12% growth for FY2023, while outlook for generics as well as the institutional business looks stressed. Dewas plant is expected to commence commercial production with contribution from the plant likely to start by 2HFY2024 and full impact expected by FY2025. Given the apparent challenges in exports markets, higher cost pressures, and delay in Dewas commissioning, performance in the subsequent quarters is expected to be subdued.
We downgrade our rating to Hold with a revised PT of Rs. 1080.
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