Ipca Laboratories Ltd., incorporated in the year 1949, is a Mid Cap company (having a market cap of Rs 26410.61 Crore) operating in Pharmaceuticals sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 1134.58 Crore, down -20.39 % from last quarter Total Income of Rs 1425.21 Crore and up 4.33 % from last year same quarter Total Income of Rs 1087.49 Crore. Company reported net profit after tax of Rs 163.70 Crore in latest quarter.
Investment Rationale
The brokerage lowers EPS estimate by 5%/2% for FY22/FY23E, reflecting a) sales growth constraints in the API/Generics segment and b) an increase in marketing and promotional cost with the easing of lockdown-related measures in the Branded Generics segment. It continues to value IPCA on 24x 12M forward earnings to arrive at TP of INR2,400. It remains positive on the stock owing to a) its outperformance of the industry in the DF segment, b) increasing cost efficiency on better backward integration, and c) its capacity enhancement program for the API business.
Promoter/FII Holdings
Promoters held 46.3 per cent stake in the company as of March 31, 2021, while FIIs held 17.5 per cent, DIIs 25.1 per cent and public and others 11.1 per cent.
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