Indoco has completed remediation at Goa Plant-II and invited the U.S. FDA for inspection, which could be a key trigger for re-rating. Indoco has partnered with UK-based Clarity Pharma to launch 15 products, with 4โ5 already introduced, boosting its UK footprint.
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Dolat Capital Report
Indoco Remedies Ltd.'s Q2 FY26 earnings came above estimates. Ebitda margin was above our estimates mainly due to better-than-expected gross margin and lower-than-expected other expenses.
Goa plant II remediation is complete, and the company has invited the U.S. Food and Drug Administration for inspection. Any incremental sales from the lines that were restarted will reflect gradually.
We downgrade our FY26E/FY27E Ebitda estimates by 34.2%/9.6%, assuming higher other expenses.
We roll over to FY28E and maintain โSell' rating with a revised target price of Rs 224 at 16x FY28E P/E.
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