1
Please refer to important disclosures at the end of this report
1
1
Ipca is a fully-integrated Indian pharmaceutical company manufacturing over
350 formulations and 80 APIs for various therapeutic segments. Ipca is a therapy
leader in India for anti-malarials with a market-share of over
34% with a fast expanding presence in the international market as well. It also
leads in DMARDs (Disease Modifying Anti-Rheumatic Drugs) treatment for
rheumatoid arthritis.
During the 9MFY20, net profit registered a growth of 50% over the previous year,
mainly due to domestic formulations AND API. With approval of Injectable plant,
it expects pre-qualification from WHO in near future and expects both the
products to boost its revenues and margin in FY20, without execution of the
Global Fund order book.. Contribution from Global Fund tenders, new anti-
malaria products (injection and dispersible tabs), strong API pricing/demand,
Bayshore acquisition and likely pick-up in UK revenues are the key drivers.
Further the company has reduced its debt dependency to 0.2x from 0.4x in
FY14. Cash flow is also steadily increasing. Hence Buy.
BUY
CMP `1,456
Avg. Daily Volume
16,211
Face Value (`)
2
0.4
Pharmaceuticals
Market Cap (` cr)
18,399
41,170
Nifty
11,993
Reuters Code
IPCA.BO
BSE Sensex
IPCA IN
52 Week High / Low
1508/784
Jaikishan Parmar
022 3935 7600 Ext: 6810
jaikishan.parmar@angelbroking.com
IPCA Labs Ltd
Others | IPCA
Feb 20, 2020
November 16, 2018
2
Ipca Labs|Pharmaceuticals
2
2% of the
Research Team Tel: 022 - 39357600 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Ipca Labs
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)