Ipca Laboratories Ltd. share price target

Domestic formulations comprise 37% of FY21 revenues. The domestic performance has been volatile at times due to presence of anti-malarials in the portfolio. However, with incremental growth in other therapies, especially non-communicable diseases like pain management, cardiodiabetology, etc, the overall portfolio is poised for steady growth. We expect...

IPCA has reported sales of ~INR3.8b (7% of sales) in the Branded export segment over the past 12M (down 5% YoY), largely due to the COVID-led disruption. However, with a reduction in daily new cases in the Middle East / West Africa, the segment is expected to see growth recovery....

IPM is struggling for growth above 10% even after MoM abating COVID concerns and with MRs, physician activities almost reaching pre-COVID level. We believe key reasons for growth below par are (i) subdued new prescription (Rx) leading to volume de-growth (ii) digital marketing yield going south and (iii) sustained lower demand of acute products. Cardiac and anti-diabetic growth takes a breather in Jan-21 at 8.8% and 5.3% after reporting double digit growth in most months during lockdown. While amongst top therapies Gastro and VMN reported double digit growth of 14%...

Ipca Laboratories (IPCA) delivered a marginally better-than-expected 3QFY21 financial performance, led by higher revenues in the Generic/Institutional Anti-Malaria segment as well as improved profitability in its subsidiary (Onyx Scientific) and associate company (Tropic Wellness). Capacity enhancement remains on track for the API business. Opex remains controlled for the Domestic Formulation (DF) segment. We raise our earnings estimate by 4%/2% for FY21/FY22, but lower our estimates by 7% for FY23, factoring in a) recovery in the outlook for Branded...

We reduce our earnings estimate by 3%/6% for FY22/23E, as we trim our growth projection for selective countries in branded and generic export formulation segment. 3QFY21 revenue was in-line with our estimate, however there was an EBITDAM beat of 250bps due to continued lower marketing expense. IPCA reaffirmed its growth guidance for FY22-23E with 1) India...

Strong export tender, API sales; improved margins... Domestic formulations comprise 44% of FY20 revenues. The domestic performance has been volatile at times due to presence of anti-malarials in the portfolio. However, with incremental growth in other therapies, especially non-communicable diseases like pain management, cardiodiabetology, etc, the overall portfolio is poised for steady growth. We expect...

Ipca Laboratories (IPCA) delivered a better-than-expected quarter, led by a superior product mix and lower opex. A growing connect between patient, doctor, and marketing representative (MR) with the easing of the lockdown presents a better outlook in Domestic Formulation (DF) segment. Favorable demand for APIs and healthy traction in the EU/Institutional segment is further strengthening the earnings growth momentum for IPCA. We raise our EPS estimate by 5%/7% for FY21/FY22, factoring in a) an extended cost savings benefit in DF, b) improving demand in the Cough-Cold...

Q2 results were below I-direct estimates on all fronts due to lower-thanexpected sales in domestic formulations. Notwithstanding quarterly gyrations in domestic formulations, the company continues to thrive on the exports front, both in formulations and APIs. Though there are fluctuations in the institutional business, the management remains upbeat on prospects. Going ahead, with firm growth tempo in domestic formulations, good prospects both for API exports, formulation exports, we expect further improvement in financial parameters. Ipca will continue to remain a compelling bet on the back of well-rounded growth prospects for FY2023Esales, EBITDA, PAT CAGR of 12%, 22%, 29%, respectively. We arrive at our...

EPS increased by 33%/2% for FY21/22E while 6% decreased for FY23E. 1QFY21 earnings was much higher than our estimate due to 1) incremental revenue of Rs2.59bn related to HCQS and CQ supply 2) better gross margin...