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
Ipca Laboratories Ltd. delivered better-than-expected operating performance in Q4 FY24, led by improved domestic formulation sales and stable pricing in the API segment. Adjusted earnings were lower than our estimate, largely due to higher minority interest.
We cut our earnings estimates by 12%/14% for FY25/FY26, factoring in:
gradual uptick from the re-launches of abbreviated new drug application in the U.S. market,
a challenging outlook in the branded generic exports segment, and
moderation in the growth outlook in acute therapies within the DF segment.
We value IPCA at 26 times 12 months forward earnings to arrive at our target price of Rs 1,140.
IPCA continues to progress well on improving the profitability of Unichem and enhancing synergy with it. Management is also working on scaling up the U.S. generics business from its own facility.
Further, it remains on track to outperform the industry in the DF segment. Accordingly, we model a 39% earnings CAGR over FY24-26, partly due to the low base of FY24.
The current valuation adequately factors in the upside in earnings. Reiterate Neutral.
Click on the attachment to read the full report:
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.
