Ipca Laboratories Ltd. share price target

IPCA has delivered 12% sales CAGR in the DF segment v/s India Pharma market (IPM)'s growth of 7% over FY18-21, with 26% YoY growth in 9MFY22. Almost 68% of the growth was led by volume, 20% by price and the remaining by new launches for 12M ending Feb'22. The shift in doctors' inclination towards prescribing Aceclofenac (than diclofenac) along with IPCA's superior marketing efforts is primarily fortifying its ZERODOL brand (26% of DF sales as per AIOCD) and its combinations. Even Chlorthalidone has witnessed high-teens growth over the past two...

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The Ipca Laboratories stock has been sub-divided from one existing equity share of | 2 each face value into two equity shares of | 1 each face value. The record date for the same is January 11, 2022 while the ex-date for the same is today i.e. January 10, 2022. Consequently, Ipca Lab's share price has dropped to ~| 1099/share from...

Q4FY22/Q1FY23. Domestic business (45% of total sales) continues to remain on strong footing and should continue to outperform IPM. Strong API capabilities and diversified model benefit IPCA in the current environment. We recommend Buy' rating on the stock with target price of Rs 2,450 based...

Maintain BUY due to good traction in domestic formulations and sustainable growth amid some margin pressure in medium term Target Price and Valuation: We value Ipca at | 2490 i.e. 26x P/E on FY23E EPS...

We increase our earnings estimates by 6% for FY23E as we upgrade our growth assumptions on India formulations and UK generics. With tailwind in acute therapy products (mainly Anti-infective medicines), we increase our...

One-off sales of CQ and HCQS to impact growth and margin in FY22E We increase our earnings estimates by 9.7%/7.7% for FY22E/23E while revenue cut by 3.3%/3.1% in FY22E/FY23E. Expansion in EBITDA margins by 170bps to 25.2% (management guidance of 25.0-25.5%) due to reduction in...

Ipca Laboratories (IPCA)'s 4QFY21 performance was below expectations, weighed by moderation in the Domestic Formulation (DF) segment and API sales. However, IPCA remains on track to deliver healthy mid-teen YoY growth in the Branded Generics segment. Increased business share from the integrated manufacturing value chain and better operating leverage in DF would drive improvement in profitability going forward adjusted for onetime business from Hydroxychloroquine Sulfate (HCQS) in FY21. We lower our EPS estimate by 5%/2% for FY22/FY23E, reflecting a) sales growth constraints in the API/Generics segment and b) an increase in...