Motilal Oswal: Ipca Laboratories - On A Strong Growth Trajectory
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Motilal Oswal Report
Ipca Laboratories Ltd. is an international pharma company that produces and markets formulations, drug intermediates, and active pharmaceutical ingredients (API).
In FY20, Ipca Laboratories’ dosage form (DF) business registered 15% YoY growth (approximately 500 basis points better than industry), driven by superior execution in pain management, cardio-vascular/anti-diabetes and anti-malaria therapies.
Due to the Covid-19 led disruption, some slowdown has been seen in dermatology/anti-bacterials (5%/6% of DF sales).
For Q1 FY21, the Company recorded 8% YoY growth in DF sales. Adjusting for hydroxychloroquine (HCQS) sales to the government, Q1 YoY growth stood at 2%.
Considering the gradually improving outlook for the DF segment led by growth from government orders for HCQS and improvement in pricing/volumes within branded DFs, we expect an 11% sales compound annual growth rate over FY20–22 in DF.
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