Hold Ipca Laboratories, target price Rs 909: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has hold call on Ipca Laboratories with a target price of Rs 909. The current market price of Ipca Laboratories is Rs 828.

Ipca Laboratories, incorporated in the year 1949, is a Mid Cap company (having a market cap of Rs 20944.55 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 31-12-2022, the company has a total of 25 Crore shares outstanding.

Investment Rationale
Operating leverage will be delayed owing to slower revenue growth and margins will be under pressure. The stock is trading at rich valuation levels of 27.1x/21.0x its revised FY2024/FY2025 EPS estimates, where earnings CAGR over FY2022-FY2025E is muted.

Promoter/FII Holdings
Promoters held 46.29 per cent stake in the company as of 31-Dec-2022, while FIIs owned 10.46 per cent, DIIs 33.71 per cent.