Views on Ipca Laboratories Ltd 1QFY2017 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP- Research Pharma, Angel Broking) on Ipca Laboratories Ltd 1QFY2017 Results:

"For 1QFY2017 the company posted results better than expected sales and OPM, while net profit came in lower than expected. Sales came in INR 822cr V/s INR 680cr expected V/s INR 751cr in 1QFY2016, a YoY growth of 9.4%. Formulation sales (INR 620cr), posted a YoY growth of 15%, while API (INR 202cr), posted a YoY de-growth of 3%. Domestic formulation sales (INR 345cr), posted a YoY growth of 9%, while Exports formulation sales (INR 275cr), posted a YoY growth of 22%. Domestic API sales (INR 35cr), posted de-growth of 37%, Exports API sales (INR 166cr), growth of 9%. On the operating profit front, the EBITDA margins came in at 13.1% V/s 9.6% expected V/s 10.0% in 1QFY2016. This is against 8.4% in 4QFY2016. Other income (INR 17.4cr), posted a YoY growth of 56.2%. Thus, the Adj. net profit came in at INR 47cr V/s INR 52cr expected V/s INR 28cr in 1QFY2016, a YoY growth of 11.4%. We maintain our BUY rating on the stock."

Shares of IPCA LABORATORIES LTD. was last trading in BSE at Rs.529 as compared to the previous close of Rs. 523.05. The total number of shares traded during the day was 78705 in over 2991 trades.

The stock hit an intraday high of Rs. 534.8 and intraday low of 525.1. The net turnover during the day was Rs. 41726596.

Source : Equity Bulls

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