Ipca Labs 3QFY2016 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking) on Ipca Labs 3QFY2016 Results:

"IPCA Labs posted results lower than expected on all fronts. For 3QFY2016, the company posted sales of INR 674cr V/s INR 750cr expected; a YoY de-growth of 10.0% mainly impacted on back of exports, while domestic formulations witnessed some recovery. Exports (INR 338cr), posted a YoY dip of 19.2%, mainly on back of formulations ( INR 221cr) which dipped by 27.5% YoY, while API (INR 117cr) posted a 3.0% YoY growth. On domestic front, the domestic markets (INR 336cr) posted a YoY growth of .5% YoY driven by formulations (INR 308cr) a 10.8% YoY and API (INR 28cr) posted a YoY dip of 24.8%.

On operating front, the OPM's came in 11.8% V/s 14.1% expected a V/s 15.6% in 3QFY2015. Lower than expected sales was the main reason for the lower than expected OPM's. This along with the 55.0% YoY rise in the interest expenses, lead the Adj. net profit would come in at INR 23cr V/s INR 53cr expected V/s INR 42cr, YoY de-growth of 44.2%. We maintain our BUY rating with a price target to be revised later."

Shares of IPCA LABORATORIES LTD. was last trading in BSE at Rs.647.3 as compared to the previous close of Rs. 619.3. The total number of shares traded during the day was 203527 in over 6669 trades.

The stock hit an intraday high of Rs. 659.8 and intraday low of 611.8. The net turnover during the day was Rs. 126791262.

Source : Equity Bulls

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