Ipca Labs - At An Inflexion Point: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.After three years of earnings deterioration, Ipca Laboratories Ltd. is well-poised to deliver strong earnings growth over FY24-27.With broad-based growth in volume and pricing, Ipca has been able to outperform the industry significantly in the domestic formulation market, with 15% YoY growth in MAT August 2024 and a 15% compound annual growth rate in MAT Aug’21-24.Ipca is making efforts to augment its export prospects through new launches and market share gains in generics exports. It is also working to drive synergies from the Unichem acquisition.After a muted performance in the U.S. generics business over the last 10 years due to compliance issues, Ipca is geared up to revive its U.S. business through improving U.S. Food and Drug Administration compliance, new launches over the next six-eight months, and synergies from the Unichem acquisition.Considering a 29% earnings CAGR and an anticipated improvement in the return ratio to ~17% over FY24-26, we value Ipca at 38 times 12 months forward earnings to arrive at a target price of Rs 1950. We upgrade Ipca to Buy as we factor in better operational efficiency, a revival in U.S. business, synergies from the Unichem acquisition, and well-established DF business..Click on the attachment to read the full report:.CIE Automotive - Profitability To Maintain As Growth Moderates: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Ipca Labs - At An Inflexion Point: Motilal Oswal

The brokerage upgrades the stock to 'Buy' rating on better operational efficiency, a revival in U.S. business, synergies from the Unichem acquisition, and well-established DF business.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Ipca Labs - At An Inflexion Point: Motilal Oswal

The brokerage upgrades the stock to 'Buy' rating on better operational efficiency, a revival in U.S. business, synergies from the Unichem acquisition, and well-established DF business.

Choose a plan

Follow Us

DOWNLOAD THE APP