Views on IPCA Laboratories Ltd 3QFY2017 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- Pharma, Angel Broking) on IPCA Laboratories Ltd 3QFY2017 Results:

IPCA Labs (CMP: INR 526 / TP: INR 613 / Upside: 16.5%)

"IPCA Labs posted results lower than expected on sales and net profit front while OPM's were in line with expectations. In sales the company posted sales of INR 731cr V/s INR 815cr expected a YoY growth of 8.3%. The strong sales growth was aided by the API (INR 162.1cr) which registered a YoY growth of 16.0%, while Total Formulations, which registered a YoY growth of 6.0%. On EBITDA front the company posted EBITDA of 13.9% V/s 13.5% expected V/s 11.6% in 3QFY2016. Consequently PAT came in at INR 40.5cr V/s INR 61.6cr expected V/s INR 30.9cr in 3QFY2016 a growth of 31.3% YoY. The growth in the net profit was lower, on back of higher taxation, which came in at 34.9% of PBT v/s 40.6% of PBT in 3QFY2016. We maintain our BUY rating on the stock."

Shares of IPCA LABORATORIES LTD. was last trading in BSE at Rs.518.5 as compared to the previous close of Rs. 526.25. The total number of shares traded during the day was 144402 in over 5459 trades.

The stock hit an intraday high of Rs. 541.8 and intraday low of 514.1. The net turnover during the day was Rs. 76502748.

Source : Equity Bulls

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