with a market valuation of 21,667.40 Cr, IPCA Laboratories is a Large-cap company engaged in Pharmaceutical industry. Ipca has been a health partner in over 120 countries on 6 continents for over 60 years. The firm holds the manufacturing leadership position for more than 12 APIs internationally and is one of the leading manufacturers and suppliers of these APIs globally. Research analysts at Cholamandalam Securities Limited (CSL) have set a target price of 1200 for the stock while maintaining a stop loss of Rs. 730. The target price implies a potential upside of 40% from the current market price of the stock, which analysts believe will be achieved over a target period of 6 months.
Research analysts at Cholamandalam Securities Ltd. (CSL) said in a note that “IPCA Labs Ltd. is in a medium term down trend but in the near term it is consolidating in the range of 830 – 950. The stock was formed in the short term Descending wedge pattern which gives bullish momentum in future. We expect the stock to take support near 800 level and start short term uptrend which gives breakout towards 950 level. From this point of view, we consider this stock to take support near 800 level Recommend buy at 800 long term support with stop loss and target 1150 – 1200. Long term support is seen at 800 level and resistance is at 1200 level.
“We expect earnings CAGR of 33% in FY23-25, led by 17% / 16% / 11% sales CAGR in India / API / Export (generic / branded) segments respectively as well as 480bp EBITDA margin Will be with detail. We remain positive on IPCA due to better execution, a) growth in brand leadership in DF, b) cost minimization in product pipeline/API segment and gradual recovery in exports,” claimed the analysts.
Behind IPCA’s fundamental rationale, analysts said, “Domestic Formulations (DF) is the key driver of its sales growth, supported by superior market performance in Pain/Dermatology/Urology and higher MR base. Near-term growth in the API segment Despite constraints, IPCA is building levers to almost double its API exports by FY27. Sales of export (branded/generic) formulations are likely to revive from FY24. Greater focus on cosmetics aspects in dermatology Giving will lead to 25% growth in the next 12-18 months for an industry growth of 9-10% compared to IPCA. IPCA’s MR capacity has been stable at ~4,000-4,600 since FY 2017, which means FY 2017 Improved MR productivity with 13% sales CAGR in -22. However, the company added ~1,200 MRs in 1HFY23, due to which its MR productivity dipped marginally. The management, however, is focusing on increasing productivity. Overall, by IPCA Likely to display 15% YoY sales growth in FY24.IP CA’s MR capacity has remained stable at ~4,000-4,600 since FY17, which means better MR productivity with 13% sales CAGR over FY17-22. However, the company added ~1,200 MRs in 1HFY23, due to which its MR productivity dipped marginally. The management, however, is focusing on increasing productivity. Overall, IPCA is likely to display 15% YoY sales growth in FY24.
Shares of IPCA Laboratories closed on Friday 856 each level, down 0.27% from previous close 858.35 on NSE. The stock recorded a total volume of 81,757 shares as compared to the 20-day average volume of 278,408 shares. The stock touched a 52-week high at 1,128.50 (10-Jan-2022), and at a 52-week low at 831.05 (13-Jun-2022).
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
Know your inner investor
Do you have guts of steel or are you a victim of insomnia regarding your investments? Let’s define your investment approach.
catch all business News, market news, breaking news events and breaking news Update on Live Mint. download mint news app To get daily market updates.