Edelweiss Securities has given Buy recommendation for Ipca Laboratories with a target price of Rs. 2530 in its research report issued on Dec 02, 2021
Edelweiss Securities’ report on Ipca Laboratories
We interacted with Joint MD of Ipca Laboratories (Ipca), Mr. Ajit Jain. Key highlights: i) Confident of clocking market-beating growth in India as other therapies complement Zerodol. Getting aggressive in cardiac, which can become 25% (from 18%) of the overall pie. ii) Rebuilding UK business through a direct approach, which should improve margin over the next 18 months. iii) Dewas and Ratlam API plants to add 25% to existing capacity. iv) Input cost pressures expected to stabilise in a couple of quarters. v) Targeting API companies with newer molecules, possibly USFDA approved, which can be forward-integrated.
Barring near-term pressures, Ipca is poised to turn in organic low-teens growth as its revenue trajectory is intact. ‘BUY’ with a TP of INR2,530.