Emkay Global has initiated coverage on Ipca Laboratories with a buy rating and a target price of ₹1,700 per share, stating that the company is well-placed to defy sceptics and continue delivering superior performance relative to peers. The brokerage said Ipca’s domestic formulation franchise remains its biggest competitive strength, noting that the company has recorded the second-highest market share gain within the Indian Pharmaceutical Market (IPM) over the past three years among the top 20 listed players.
According to Emkay, the company’s portfolio construct—heavily anchored in chronic and sub-chronic therapies—provides strong visibility on sustainable growth despite periodic volatility in other segments. The firm believes Ipca’s domestic engine will remain a long-term outperformer, supported by improved field force productivity, deeper penetration into semi-urban markets and an expanding contribution from differentiated branded products. These factors, Emkay said, position Ipca to continue outpacing the broader IPM growth trajectory.
The brokerage also highlighted significant medium-term margin expansion potential, driven by mix improvement, operating leverage benefits and ongoing efficiency measures across manufacturing units. Emkay added that investor concerns around execution and earnings stability have repeatedly proven unfounded in recent cycles, and it expects Ipca to once again deliver a stronger-than-anticipated earnings profile as the domestic franchise scales further.
Disclaimer: The views and recommendations above are those of Emkay Global. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
