Sharekhan has given Buy recommendation for Ipca Laboratories with a target price of Rs. 2560 in its research report issued on May 31, 2021

Sharekhan’s research report on Ipca Laboratories

Ipca reported strong numbers for Q4FY21, though earnings missed estimates. The Formulations segment could be the key growth driver for IPCA labs, driven by a strong double digit growth of 15-18% in domestic formulations. Over the long term, strong demand and easing of capacity constraints with commissioning of the Dewas plant and additional capacities coming onstream at Ratlam in FY22 would drive the API segment’s growth.

Outlook

We maintain a Buy recommendation on the stock with an unchanged PT of Rs. 2,560.

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