Prabhudas Lilladher's research report on Ipca Laboratories
IPCA Lab’s (IPCA) Q4 performance was impacted by weak exports, however API, UK and branded generics issues should normalize from H2FY23, in our view. Domestic business (45% of total sales) remained strong and it will continue to outperform IPM. Strong API capabilities and diversified model have benefited IPCA in the current environment. Our FY23E and FY24E EBIDTA stands reduced by 3% yet PAT cut is higher by 7-10%, as management indicated 25% tax rate vs 22-23% earlier.
Outlook
We recommend ‘Buy’ rating with revised TP of Rs 1,085 based on 23x FY24E earnings.
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