Name: Latest research reports of Ipca Laboratories Ltd. authored by Motilal Oswal and published by - Trendlyne research reports.
Item: Ipca Laboratories Ltd.
Rating: 5
Author: Motilal Oswal

A dose of growth

Buy: Ipca Laboratories Ltd.

Motilal Oswal

25 February 2020 IPCA remains confident that it will outperform industry with 14-15% CAGR in DF segment over the next three years. The plan to add 250-300 MRs over the next 6-9 months emphasizes its incessant focus on this segment. Pain management prospects appear particularly promising, with IPCA comfortably surpassing industry growth (8-10%) with a CAGR of 17% over FY14-19 and 20% growth in 9MFY20. IPCA plans to add two more SKUs in pain management in FY21. The Zerodol group of brands has reached a revenue size of ~INR4b with potential to double over 3-4 years. Another promising product is chlorthalidone and its combination, which has reached a revenue size of INR1b in the past four years with attractive medium- term potential. IPCA delivered strong 33% YoY growth in API segment in 9MFY20, led by robust off-take in existing molecules and addition of new molecules (Sartans).