The key near-term challenge for IPCA is with respect to API sales. The company expects a softer Q3 due to the supply disruption in Sartan APIs and elevated raw material prices
Ipca Laboratories
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
IPCA Labs (CMP: Rs 2,067; Market Cap: Rs 26,222 crore) has withdrawn its FY22 guidance for revenue growth and EBITDA (earnings before interest, taxes, depreciation and amortisation) margin because of uncertainty over raw material prices and the outlook for Sartan APIs. The company, however, seems prepared to meet the new mandate on impurities from the European Medicines Agency (EMA), and is waiting for the end of Q3 to get more clarity on the margin outlook. Further, it has gone for…
