IPCA Labs shares will be in focus after HSBC and Nomura released fresh commentary post the company’s Q4FY25 results.
HSBC downgraded its target price to ₹1,330 per share and maintained a Hold rating on the stock. The brokerage noted that Q4 results showed a slight beat on EBITDA margins, though impairment costs impacted PAT. A lower tax rate provided some cushion to the bottom line. HSBC projects 8-10% revenue growth in the medium term, but highlighted that growth could accelerate to 12-13% if synergies from the Unichem acquisition play out as expected.
In contrast, Nomura reiterated its Buy rating with a higher target price of ₹1,590 per share. It noted that Q4 sales were marginally ahead of expectations, though gross margin and EBITDA margin were slightly below estimates. While FY26 earnings guidance is lower than previously projected, Nomura remains constructive on medium-term earnings growth. The brokerage highlighted that management expects Unichem EBITDA margins to improve to 18-20% from around 15% in FY25.
Both brokerages flagged Unichem synergies as a key monitorable for driving incremental margin and growth performance in the coming quarters.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
