Hold Ipca Laboratories, target price Rs 790: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has hold call on Ipca Laboratories with a target price of Rs 790. The current market price of Ipca Laboratories is Rs 692.2.

Ipca Laboratories, incorporated in the year 1949, is a Mid Cap company (having a market cap of Rs 17596.92 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.

Investment Rationale
IPCA Laboratories has agreed to acquire a 33.4% stake in Unichem Laboratories and an additional26% shareholding through a public offer at Rs. 440 per share, which will amount to a total consideration of ~ Rs. 1,840 crore. The acquisition will help IPCA Labs to gain entry in the lucrative yet competitive market of the US with the help of Unichem’s regulatory compliant facilities.

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.