Views on IPCA Labs 1QFY2016 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking) on IPCA Labs 1QFY2016 Results:

"IPCA Labs, announced lower than estimated results for 1QFY2016. The company posted sales of INR 751cr V/s INR 820cr estimated a dip of 15.0% yoy. The domestic sales came in INR 374cr, a growth of 4.7% yoy, while exports came in at INR 377cr, a dip of 32.0% yoy. Export formulation, which came in at INR 224.8cr, dipped 42% yoy. The dip in the sales came on back of import alerts for its USFDA facilities, lower anti malarial business and impact on emerging markets on back of currency fluctuations. The EBDITA margins consequently came in at 10.0% lower than 12.6% expected and v/s 24.0% in 1QFY2015, on back of lower sales during the quarter. Consequently; the Adj. PAT came in at INR 28cr V/s INR 69cr estimated and V/s INR 145cr in 1QFY2015, a de-growth of 80.8% yoy. We maintain our ACCUMULATE rating on the stock with a target price of INR 736."

Shares of IPCA LABORATORIES LTD. was last trading in BSE at Rs.676.55 as compared to the previous close of Rs. 694.1. The total number of shares traded during the day was 17949 in over 1052 trades.

The stock hit an intraday high of Rs. 694 and intraday low of 675. The net turnover during the day was Rs. 12268292.

Source : Equity Bulls

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