Views on IPCA Laboratories Ltd 4QFY2016 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- Pharma , Angel Broking) on IPCA Laboratories Ltd 4QFY2016 Results:

IPCA Labs (CMP: INR 436 / TP: Under Review/ Upside:)

"For 4QFY2016, IPCA Labs posted results much below expectations on sales and OPM front, while tax write back lead the net profit come in better than expected. For the quarter, the company posted sales of INR 612cr V/s INR 680cr expected a YoY de-growth of 1.7%. The dip in the sales was lead by the API sales (INR 114cr), a dip of 26% YoY, while Formulations (INR 498cr) posted a YoY growth of 6.0%, with domestic formulation posting a YoY growth of 9.0%. On operating front, the gross margins came in at 64.4% V/s 58.8% during the last corresponding period while EBDITA came in at 8.4% V/s 4.6% during the last corresponding period. The reported net profit thus came in at INR 38cr V/s a loss of INR 14cr during the last corresponding period. The Adj. net profit was INR 38cr V/s INR 8cr during the last corresponding period. We maintain our BUY rating with the target price to be revised later."

Shares of IPCA LABORATORIES LTD. was last trading in BSE at Rs.413.55 as compared to the previous close of Rs. 423.45. The total number of shares traded during the day was 39940 in over 2955 trades.

The stock hit an intraday high of Rs. 425 and intraday low of 411. The net turnover during the day was Rs. 16627430.

Source : Equity Bulls

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