Ipca Labs hits 52-week high; up 21% in 11 days post Q3 results

Ipca Laboratories hit a 52-week high of Rs 671, up 5% on the BSE in intra-day trade, extending its past 10 days gain, after the company reported more than doubled net profit for the quarter ended December (Q3FY18) on back of strong operational performance.
In past 11 trading days, the stock of pharmaceutical company surged 20% from Rs 556 on February 6, as compared to 1.3% decline in the S&P BSE Sensex.

Ipca Labs reported a standalone net profit of Rs 1,056 million in Q3FY18 against Rs 414 million in year ago quarter. Total income increased 15% to Rs 8.7 billion from Rs 7.56 billion in the corresponding quarter of previous fiscal.
EBITDA (earnings before interest, tax, depreciation and amortised) margin improved 500 bps to 19.79% from 14.79%.

Analysts at local brokerage houses have bullish on the stock with 12 month target price in the range of Rs 715 and Rs 770. “The company has invited US Food and Drug Administration (FDA) for inspection of Ratlam API (Active Pharmaceutical Ingredient) unit along with prior requests for reinspection of formulations units. Our bullish stance is built on assumption company would clear the FDA audits which would drive the rerating,” analyst at IIFL Wealth Management said in result update.