Emkay Global maintains ‘buy’ on Ipca Labs, target price Rs 1,200

Emkay Global has maintained ‘buy’ rating on Ipca Laboratories in the long term with a target price of Rs 1,200. Shares of Ipca ended up 1.9% at Rs 1122.4 while the BSE Sensex closed 67.93 points down at 40,821.30.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 1283.90 crore, up 19.08% from last quarter sales of Rs 1078.19 crore and up 26.87 % from last year same quarter sales of Rs 1012 crore. The company has reported net profit after tax of Rs 194.91 Crore in latest quarter.


The company’s top management includes Dr.(Mrs.)Manisha Premnath, Mr.Ajit Kumar Jain, Mr.Anand T Kusre, Mr.Dev Parkash Yadava, Mr.Kamal Kishore Seth, Mr.Pranay Godha, Mr.Prashant Godha, Mr.Premchand Godha. Company has G M Kapadia & Co as its auditoRs As on 30-09-2019, the company has a total of 126,352,109 shares outstanding.

Investment Rationale

The brokerage action came after the classification of the company’s Silvassa plant as Official Action Indicated (OAI) by the US FDA after inspection. The OAI status is on the expected lines and implies that the resolution process will take longer - unlikely by FY21, said Emkay. It is still unclear if Silvassa observations would cause any delay.