Motilal Oswal Securities Limited (MOSL) has reiterated its “buy” rating on Ipca Laboratories, setting a target price of ₹1980. This implies an upside potential of 21% from the current market price of ₹1639.00.
MOSL emphasized the company’s strong growth outlook, driven by scaling US operations and outperforming the Indian Pharmaceutical Market (IPM). This robust strategy is expected to aid significant earnings growth in the coming years. Additionally, Ipca’s top 10 therapies have witnessed double-digit growth over the past four years, highlighting its solid market positioning.
The company is actively expanding its footprint by creating new divisions and plans to add 500-700 medical representatives (MRs) to boost sales efforts. MOSL also noted that synergies from the recent Unichem acquisition are anticipated to strengthen Ipca’s operational efficiency further.
Ipca Laboratories is projected to deliver a 27% earnings compound annual growth rate (CAGR) over FY24-27, alongside an improved return ratio of approximately 16%, underlining its growth potential.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Please consult a qualified financial advisor before making investment decisions.
