IPCA Laboratories - In Line Performance - Maintain Buy - Emkay

Reco: BUY
CMP: Rs450
Target Price: Rs525

- IPCA's Q2FY13 results, in-line - a) Revenues at Rs7.6bn (up 23% YoY), b) EBITDA at Rs1.8bn (up 13% YoY) and c) APAT at Rs1.16bn (up 11% YoY)

- Revenue growth was led by 15% growth in India & 43% growth in institutional tender biz. EBITDA margins contracted 216bps YoY to 23% on back of higher R&D cost and lower anti-malaria sales in India

- Going forward - Ramp-up in recently approved USFDA Indore facility & strong growth in domestic business will be the key triggers for 20% top-line growth & 1% margin expansion

- Upgrade FY13/ 14E earnings by 7%/ 9% to Rs32.7 & 37.5 respectively. Maintain Buy with a revised TP of Rs525 (14xFY14 EPS of Rs37.5)

Source : Equity Bulls

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