Karvy Stock Broking has maintained its buy rating on Ipca Laboratories with a price target of Rs 500 in its March 17, 2009 research report.
“The company’s domestic formulations business which accounts for 40% of FY 2008 revenues should grow by 10% in FY 2009. The low growth has been on account of the tender business of Rs 600 million in FY2008 which is marginal in the current year. The overall branded revenues are Rs 1800 million as against Rs 1200 million in the previous year. The export API revenues should do around Rs 2500 million as against Rs 1940 million in the previous year. We maintain BUY on the stock with a price target of Rs 500 based on 7.1x FY 2010E,” says Karvy Stock Broking’s research report.
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