External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

External broker reports(aggregated public sources)

ICICI Securities Ltd

ICICI Securities Limited provides investment services. The Company provides corporate and investment banking, securities, wealth management, retail brokerage, initial public offerings, and advisory services. 

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Equity Bottom-Up

<ul><li>Ipca is a fully integrated pharma company manufacturing over 350 formulations and 80 APIs with exports contributing 50% of revenues in FY21</li><li>Major therapeutic segments include pain management, cardiovascular and anti-diabetics, anti-infectives, anti-malarials, which together account for 75% of revenues</li><li>Target Price and Valuation: Valued at Rs 1175 i.e. 24x P/E on FY24E EPS of Rs 48.9</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Ipca is a fully integrated pharma company manufacturing over 350 formulations and 80 APIs with exports contributing 50% of revenues in FY21Major therapeutic segments include pain management, cardiovascular and anti-diabetics, anti-infectives, anti-malarials, which together account for 75% of revenuesTarget Price and Valuation: Valued at Rs 1175 i.e. 24x P/E on FY24E EPS of Rs 48.9Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IPCA Laboratories: Domestic Outperformance Offset by Drag in Exports

<ul><li>The Ipca Laboratories stock has been sub-divided from one existing equity share of Rs 2 each face value into two equity shares of Rs 1 each face value</li><li>Consequently, Ipca Lab’s share price has dropped to ~Rs 1099/share from ~Rs 2200/share.</li><li>Hence, our target price has also now been revised to Rs 1245/share post this corporate action.</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

The Ipca Laboratories stock has been sub-divided from one existing equity share of Rs 2 each face value into two equity shares of Rs 1 each face valueConsequently, Ipca Lab’s share price has dropped to ~Rs 1099/share from ~Rs 2200/share.Hence, our target price has also now been revised to Rs 1245/share post this corporate action.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ipca Laboratories: Two for One Share Stock Split

<ul><li>IPCA is a fully integrated pharma company manufacturing over 350 formulations and 80 APIs with exports contributing 50% of revenues in FY21</li><li>Ipca reported decent Q2FY22 results despite challenges. Sales were up 13.5% YoY to Rs 1544.4 crore</li><li>Maintain BUY due to good traction in domestic formulations and sustainable growth amid some margin pressure in medium term. We value IPCA at Rs 2490.</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

IPCA is a fully integrated pharma company manufacturing over 350 formulations and 80 APIs with exports contributing 50% of revenues in FY21Ipca reported decent Q2FY22 results despite challenges. Sales were up 13.5% YoY to Rs 1544.4 croreMaintain BUY due to good traction in domestic formulations and sustainable growth amid some margin pressure in medium term. We value IPCA at Rs 2490.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IPCA Laboratories: Strong Performance Despite GPM Pressure

Global Healthcare Analyst

Tina Banerjee

<p>Ipca Laboratories is a fully-integrated Indian generic pharmaceutical company manufacturing both formulations and APIs. The company’s domestic formulation business (contributes 42% of total revenue) is back to its double-digit growth path, driven by its focus on fast growing lifestyle related therapeutic segments, including pain management, cardiovascular, and anti-diabetes. With the recovery of the base business (non COVID portfolio), pain management segment grew 36% y/y and contributed ~49% of domestic formulation business in Q1 FY22. Pent up demand with the declining incidences of the COVID-19 and increasing vaccination in India should lead to volume-driven growth for the domestic formulation business. Management guided for 16–18% y/y growth in domestic formulation segment in FY22, which seems conservative. Ipca Laboratories checks most of the boxes for being considered as a sound investment idea, which include stable sales growth (five-years CAGR of 13%, mainly driven by volume), expanding margins (1,700 basis points margin expansion since FY18), debt-free balance sheet, robust liquidity with cash balance of INR 9 billion, and RONW ratio of 20%+.  The stock is currently trading at a P/E of 30x, which seems reasonable compared to its peers and industry average. Recent correction in the stock is an attractive buying opportunity for the long-term investors.  </p>

Ipca Laboratories is a fully-integrated Indian generic pharmaceutical company manufacturing both formulations and APIs. The company’s domestic formulation business (contributes 42% of total revenue) is back to its double-digit growth path, driven by its focus on fast growing lifestyle related therapeutic segments, including pain management, cardiovascular, and anti-diabetes. With the recovery of the base business (non COVID portfolio), pain management segment grew 36% y/y and contributed ~49% of domestic formulation business in Q1 FY22. Pent up demand with the declining incidences of the COVID-19 and increasing vaccination in India should lead to volume-driven growth for the domestic formulation business. Management guided for 16–18% y/y growth in domestic formulation segment in FY22, which seems conservative. Ipca Laboratories checks most of the boxes for being considered as a sound investment idea, which include stable sales growth (five-years CAGR of 13%, mainly driven by volume), expanding margins (1,700 basis points margin expansion since FY18), debt-free balance sheet, robust liquidity with cash balance of INR 9 billion, and RONW ratio of 20%+.  The stock is currently trading at a P/E of 30x, which seems reasonable compared to its peers and industry average. Recent correction in the stock is an attractive buying opportunity for the long-term investors.  

Ipca Laboratories (IPCA IN): Domestic Business Is the Key Growth Driver

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Stoxx Europe Small 200 Price Eur / Technical Analysis

<p>With further consolidation likely for the broad indexes, we want to stick with areas of the market that have shown an ability to outperform despite the broader consolidation. For that we are returning to Technology and Services. Roughly half of today’s individual stock recommendations are domiciled in Japan, while the remainder hail from India and Russia.</p>

With further consolidation likely for the broad indexes, we want to stick with areas of the market that have shown an ability to outperform despite the broader consolidation. For that we are returning to Technology and Services. Roughly half of today’s individual stock recommendations are domiciled in Japan, while the remainder hail from India and Russia.

Global Equity Strategy U.S. Fed Cut, Now What?

India

Ipca Laboratories Limited operates a pharmaceutical company, which distributes products to over 75 countries worldwide.  The Group's products include finished dosage forms, drug delivery systems, bulk drugs and intermediates.

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Ipca Laboratories (IPCA IN)

IPCA Laboratories: Domestic Outperformance Offset by Drag in Exports

Ipca is a fully integrated pharma company manufacturing over 350 formulations and 80 APIs with exports contributing 50% of revenues in FY21

ICICI Securities Limited

IPCA Laboratories: Strong Performance Despite GPM Pressure

Maintain BUY due to good traction in domestic formulations and sustainable growth amid some margin pressure in medium term Target Price and...

ICICI Securities Limited