IPCA Laboratories Ltd. shares fell more than 2% in early trading following HSBC’s downgrade of the stock’s target price to ₹1,330 per share. The brokerage maintained a Hold rating on the stock, reflecting a cautious outlook. As of 9:36 AM, the shares were trading 1.69% lower at Rs 1,400.70.
HSBC’s review of IPCA’s Q4 results showed a slight beat on EBITDA margins, but impairment costs weighed on the company’s PAT (Profit After Tax). The brokerage noted that a lower tax rate provided some relief to the bottom line.
Looking ahead, HSBC projects an 8-10% revenue growth for IPCA Laboratories in the medium term. However, the brokerage also mentioned that growth could accelerate to 12-13% if the expected synergies from the recent Unichem acquisition materialize.
IPCA Laboratories shares opened at ₹1,428.00, reaching the same high during the session. The stock dipped to a low of ₹1,390.00. Over the past year, the share price has fluctuated between a 52-week low of ₹1,052.00 and a high of ₹1,755.90.
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