Buy Ipca Laboratories; target of Rs 2000: Prabhudas Lilladher- Moneycontrol.com

Prabhudas Lilladher’s research report on Ipca Laboratories highlights a stronger-than-expected performance, with EBITDA of INR 6.4 billion up 50% year-on-year, 23% above the firm’s estimates. The broker revised revenue growth expectations upward to 14–16% from 12–13% earlier and increased operating margin (OPM) to 23% from 22% in FY27E, citing a strong Q1. Earnings per share forecasts for FY27E and FY28E were lifted by 4–5%, supported by assumed 14% revenue growth in FY27. The report points to recovery in the API segment, higher margins after separating Unichem, and steady growth in domestic formulations as key drivers. At CMP, the stock trades at 16x EV/EBITDA and 25x P/E on FY28E adjusted for Unichem stake; the firm keeps a “Buy” rating and sets a revised target price of INR 2,000.