Sharekhan has given Buy recommendation for Ipca Laboratories with a target price of Rs. 2850 in its research report issued on Sep 09, 2021

Sharekhan’s research report on Ipca Laboratories

IPCA laboratories (IPCA) domestic formulations business is on a strong footing and is expected to be a key growth driver with a likely double digit growth for FY22. IPCA’s presence in the fast growing therapies coupled with positive rub off effect of a strong IPM growth could be the key drivers for domestic formulations business. For the API segment, completion of Dewas greenfield (expected to add 25% of capacities) by FY2023 and a strong demand outlook would be the key drivers. At CMP the stock trades at 27.2x /24.1x its FY22E and FY23E EPS. Strong earnings prospects, a sturdy balance sheet, and healthy return ratios augur well for IPCA.

Outlook

We maintain Buy recommendation with a revised PT of Rs 2850.

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