Pharma Stock To Buy After Q1 Net Profit Zooms 18%, TP Rs 2018: Brokerages

Several leading brokerages appear bullish on Ipca Laboratories Ltd shares and recommended buy call after the company declared its Q1 results on August 13, 2024. Current market price of Ipca Laboratories shares on BSE is Rs 1333.55 per share with decline of 1.27% in trade today. Ipca Laboratories shares offered return of 50% in last 1-year and slipped over 2% in last 1-week. The company's market capitalisation stood at Rs 33,892.41 crore. Check key details below pertaining to Ipca Laboratories:

Ipca Laboratories Q1 Results: The leading pharmaceuticals firm declared a jump of 18% year-on-year (YoY) in its net profit for Q1FY25 to Rs 192 crore as against Rs 162.8 crore declared in the corresponding quarter of last year. Its topline zoomed 32% YoY to Rs 2092.6 crore as compared to Rs 1585 crore in the corresponding quarter of last year. EBITDA of IPCA surged 28% YoY to Rs 392.8 crore. Indian formulations income witnessed surge by 12% to Rs 873 crore and exports income declined 4% at Rs 590.86 crore.

Ipca Laboratories Shares Performance: The 52-week high price of Ipca Laboratories shares on BSE is Rs 1414.00 per share (as on 13/08/2024) and 52-week low price is Rs 857.50 per share (as on 04/09/2023), respectively. Ipca Laboratories shares offered return of 19% year-to-date, soared 44% in last 2-years, gained 10% in last 3-years, and offered return of 183% in last 5-years.

Brokerages Appear Upbeat, Recommend Buy Call: Several brokerages recommended buy call to Ipca Laboratories shares. Brokerage firm Progressive Shares Brokers has buy call on Ipca Laboratories Ltd share with target price of Rs 1698 & 2018 with target time of 9-12 months. According to the analyst, "We recommend a BUY on the company at current market price of Rs1378 or decline upto Rs1344 with the closing stop loss of Rs1075 for a target of Rs1698-Rs2018 with a horizon of 9-12months." Nuvama suggested investors to buy Ipca Laboratories shares with revised target price of Rs 1563 per share. Meanwhile, Nomura too recommended buy call with upgraded target price of Rs 1502 per share.

"Over the past one year IPCA stock has re-rated to 30-35x its one-year forward earnings from 20-25x. On our estimates, the stock trades at 38.7x/30.0x FY25/FY26 EPS of Rs 34.9/Rs 45.0. We argue that IPCA should trade at a premium to its historical trading range due to acceleration in earnings (25 per cent CAGR over FY25-27F versus 6 per cent over FY19-24) which we believe is sustainable beyond FY27F," said Nomura.

Disclaimer:

The stock has been picked from the brokerage report of Nomura, Nuvama, and Progressive Shares Brokers. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.