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Ipca Lab tumbles after broker issues underperform rating

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Capital Market
Last Updated : Feb 17 2023 | 3:16 PM IST

Ipca Laboratories fell 3.87% to Rs 830.15 after a foreign broker reportedly issued underperform rating on the stock with a target price of Rs 810 per share.

According to the media reports, the foreign broker stated that Ipca Laboratories' Q3 EBITDA & profit missed estimate by 28% & 44% respectively on in-line revenue. It said that Q4FY23 EBITDA margin will remain softer than Q3. It guided FY24 EBITDA margin at 21%. It expects lower FY23 EPS estimates by 25% & FY24/25 estimates by 9%/7%, respectively.

Ipca is a pharmaceutical company with a thrust on exports which now account for 44% of the company's income. Ipca is vertically integrated and produces finished dosage forms and active pharmaceutical ingredients.

Ipca Lab's consolidated net profit tumbled 45.25% to Rs 107.84 crore in Q3 FY23 compared with Rs 196.96 crore in Q3 FY22. Revenue from operations rose 8.08% YoY to Rs 1,546 crore in the corresponding quarter last year.

EBITDA before forex declined 15% to Rs 262.82 crore in Q3 FY23 from Rs 310.83 crore posted in Q3 FY22. EBITDA margin reduced to 16.67% in Q3 FY23 compared with 21.53% reported in the same period last year. The company reported forex gain of Rs 16.07 crore in Q3 FY23 as against forex loss of Rs 9.91 crore recorded in Q3 FY22.

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First Published: Feb 17 2023 | 2:52 PM IST

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