Ipca Laboratories Ltd. share price target

IPCA Laboratories (Ipca)'s results for 4QFY2016 have come in much lower than our expectations on the sales and the operating front, while a tax write-back led the net profit to outperform our estimates. Sales for the quarter de-grew 1.7% yoy to Rs612cr (V/s Rs680cr expected). On the operating front, the gross margin came in at 64.4% V/s 5..

ICICI Securities Ltd | Retail Equity Research Revenues de-grew 0.5% YoY to | 625 crore (I-direct estimate: | 695 crore) mainly due to 25.6% YoY de-growth in API sales to | 114 crore...

the formulations met expectations at Rs 4.98bn. Operating margin at 10.2% (vs estimated 17%)sawsequentialfallfrom16.6%inQ3,resultingin44%our/consensusmissonEBITDA atRs635mn.ThankstotaxreversalofRs190mnthatboostedcorePATtoRs377mn,which...

any volume of Artemisininbased Combination Therapy (ACTs) to IPCA, considering the continuingUSFDAimportbanonIPCA'splants.Wehadbuiltascenarioofnormalcyinthis supply,startingQ1FY17.Withnoorderallocation,IPCAwouldseeadverserevenueimpact...

ICICI Securities Ltd | Retail Equity Research Revenues declined ~11% YoY to | 740.6 crore (I-direct estimate: | 818.8 crore), due to ~22% decline in export formulations to | 305.1...

that focused mainly on the malaria division. Thus, it expects improved operating efficiency from Q4, led by enhanced productivity and better revenue mix in the domesticmarket.SeesimprovingUSsalessupportingprofitability....

For 2QFY2016, IPCA Laboratories (IPCA) posted in line sales while the net profit came in lower than our estimates. The company posted a 4.7% yoy decline in sales to Rs739cr V/s Rs750cr expected, on back of domestic and exports posting a dip of 2.3% yoy and 6.9% yoy, respectively. On the operating front, the EBITDA margin came in at 10.6% V/s 11.4% expected and V/s 16.7% in 2QFY2015, owing to lower than expected sales. Thus, the Adj. net profit came in at Rs31cr V/s Rs41cr expected and V/s Rs68cr in 2QFY2015, a yoy dip of 54.3%. While the current performance of the company is being impacted due to its key plants being under the USFDA scanner, we believe once out of it, the company can bounce back to its normalized ROE of 25%. Thus, we maintain our Buy on the stock. Results lower than expectations: The company, posted an 4.7% de-growth in sales to end the period at Rs739cr V/s Rs750cr expected and Rs775cr in 2QFY2015, on back of domestic and exports posting a dip of 2.3% and 6.9% respectively. In domestic markets (Rs364cr), posted a dip of 2.3% yoy, mainly on back a tepid formulation sales (Rs331cr), a yoy...

IPCA Labs total revenues declined by 4% YoY to Rs 7,492 mn (lower than our estimates of Rs 8,265 mn) due to tepid performance of Export formulations and flat growth in Domestic formulations. Its operating margins decreased by 540bps YoY to 11.9% (lower than our estimate of 14.2%) during the quarter due to lower gross margins and higher expenditure.

Key highlights: The company continued its dismal show in Q2 led by below expected performance in domestic formulations and formulation exports. While the sharp fall in malarial sales kept domestic formulations flat, continuing facility issues with USFDA and...