[sharetrading] Ipca Laboratories [1 Attachment]

 

[Attachment(s) from ekam ber included below]

 

Ipca Q3FY10 Result Update ; Result above expectation, raising target price ; BUY ; Target: Rs 1440

Ipca Laboratories Ltd

 

Result above expectation, raising target price

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BUY

 

CMP: Rs 1183                 Target Price: Rs 1440

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Ipca reported better than expected numbers with a) 26% growth in revenue, b) 27% growth in EBIDTA & c) 82% growth in APAT to Rs596 mn. The growth in the revenue was mainly aided by a) 38% growth in domestic formulation business, & b) 33% growth in API segment. Despite 280 bps increase in raw material cost because of higher contribution of API segment (40.5% in vs. 37.8% in Q3FY09), EBIDTA grew by 26.8%. RPAT grew by 151% to Rs583mn despite higher tax provision (up by 93%) & depreciation cost (up by 25%). On the back of better than expected numbers, we have revised our earning estimates by 11%/6% to Rs81.7 & Rs97.9 for FY10E/FY11E respectively. We have introduced our FY12E numbers with EPS of Rs120.2. On the back of strong visibility in the earnings, we have rolled our valuations to FY12E and consequent target price is Rs1440 (12x FY12E), an upside potential of 22%. Despite 96% of outperformance to broader market in last six months, we continue to like Ipca as one of our preferred bet in mid-cap Pharma space.

 

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Ipca Q3FY10 Result Update.pdf

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