Buy Ipca Laboratories, target price Rs 2480: Motilal Oswal

Motilal Oswal has buy call on Ipca Laboratories with a target price of Rs 2480. The current market price of Ipca Laboratories Ltd. is Rs 2170.75.

Ipca Laboratories Ltd., incorporated in the year 1949, is a Mid Cap company (having a market cap of Rs 26968.76 Crore) operating in Pharmaceuticals sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 1425.21 Crore, up 3.53 % from last quarter Total Income of Rs 1376.55 Crore and up 15.78 % from last year same quarter Total Income of Rs 1230.99 Crore. Company reported net profit after tax of Rs 269.77 Crore in latest quarter.


Investment Rationale
The brokerage values IPCA on a 24x 12M forward earnings basis to arrive at Target Price of INR 2,480.

Promoter/FII Holdings
Promoters held 46.3 per cent stake in the company as of Dec 30, 2020, while FIIs held 18.2 per cent, DIIs 24.5 per cent and public and others 11 per cent.