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
Domestic brokerage firm Motilal Oswal has retained a ‘Buy’ rating on Ipca Laboratories Ltd. with a target price of Rs 1,730, implying an upside of around 16% from current levels
Ipca Laboratories delivered a steady performance in the March quarter, with Motilal Oswal maintaining its bullish stance, citing strong growth visibility in domestic formulations and export markets.
The brokerage expects 17% earnings compound annual growth rate over FY26-28, driven by 12% CAGR in domestic formulation revenue, 20% CAGR in exports and better operating leverage.
Overall, Ipca remains in good stead for superior execution in DF as well as exports markets, sustaining the mid-teens return ratios over FY26-28.
IPCA Labs Q4 Results Highlights
- Q4 FY26 sales grew 6.3% YoY to Rs 2,390 crore vs estimate of Rs 2,360 crore.
- Revenue from subsidiaries declined 6% YoY to Rs 570 crore (25% of sales).
- Gross margin expanded 250bp YoY to 71%.
- Ebitda margin also expanded 120bp YoY to 20.3% vs estimate of 19.3%, driven by growth in gross margin, partly offset by higher other expenses (up 140bp YoY as % of sales).
- Ebitda grew 12.8% YoY to Rs 480 crore vs estimate of Rs 460 crore.
- Ipca Labs had exceptional expenses of Rs 45.82 crore due to the impact of new labor code and gain of Rs 60.04 crore on deconsolidation pursuant to the sale of Bayshore Pharmaceuticals LLC.
- Adjusted for the expense, PAT grew 19.2% YoY to Rs 290 crore vs brokerage estimate of Rs 280 crore.
- For FY26, revenue/Ebitda/PAT grew 8%/15%/27% to Rs 9,600 crore / Rs 2,000 crore / Rs 1,160 crore.
Click on the attachment to read the full report:
ALSO READ: Sumitomo Chemical In Focus: ICICI Securities Ups Target Price Post Q4 Beat — Check New Upside
DISCLAIMER
This 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.
Essential Business Intelligence,
Continuous LIVE TV,
Sharp Market Insights,
Practical Personal Finance Advice and
Latest Stories — On NDTV Profit.
