Buy Ipca Laboratories, target price Rs 940: ICICI Direct

ICICI Direct has buy call on Ipca Laboratories with a target price of Rs 940.The current market price of Ipca Laboratories is Rs 829.2. Time period given by analyst is 3 months when Ipca Laboratories price can reach defined target. ICICI Direct recommended to keep stop loss at Rs 765.

Ipca Laboratories, incorporated in the year 1949, is a Mid Cap company (having a market cap of Rs 20933.14 Crore) operating in Pharmaceuticals sector.

Ipca Laboratories key Products/Revenue Segments include Pharmaceuticals, Other Operating Revenue, Export Incentives, Sale of services for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 1576.69 Crore, down -3.69 % from last quarter Total Income of Rs 1637.18 Crore and up 9.23 % from last year same quarter Total Income of Rs 1443.40 Crore. Company has reported net profit after tax of Rs 115.61 Crore in latest quarter.

The company’s top management includes Mr.Premchand Godha, Mr.Ajit Kumar Jain, Mr.Pranay Godha, Mr.Prashant Godha, Mr.Anand T Kusre, Mr.Dev Parkash Yadava, Dr.(Mrs.)Manisha Premnath, Mr.Kamal Kishore Seth. Company has G M Kapadia & Co as its auditors. As on 31-03-2023, the company has a total of 25 Crore shares outstanding.

Rationale
Ipca Laboratories’ share price offers favourable risk-reward setup ahead of its quarterly earnings as it is poised near 80% retracement of post Covid rally.

Promoter/FII Holdings
Promoters held 46.29 per cent stake in the company as of 31-Mar-2023, while FIIs owned 10.58 per cent, DIIs 33.74 per cent.