ICICI Direct has given Buy recommendation for Ipca Laboratories with a target price of Rs. 2560 in its research report issued on Aug 07, 2021

ICICI Direct’s research report on Ipca Laboratories

Ipca is a fully integrated pharma company manufacturing over 350 formulations (73% of revenues) and 80 APIs (27% of revenues) with exports contributing 48% of revenues. It is a leading supplier of APIs like atenolol (antihypertensive), chloroquine and artemisinin derivatives (antimalarial), furosemide (diuretic), and pyrantel salts (anthelmintic) Major therapeutic segments include pain management cardiovascular and anti-diabetics, anti-malarials which together account for 75% of the revenues


We change our view from HOLD to BUY on this stock due to good traction in domestic formulations and growth in the medium term We value Ipca at Rs 2560 i.e. 25x P/E on FY23E EPS


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