Ipca Labs is setting up API manufacturing facility in Dewas, MP at a Capex of 250 Crore.
When one talks about IPCA, it immediately reminds us HCQS…
But apart from the Anti malarial drug HCQS touted for Covid19, Ipca produces over 80 APIs at 12 production facilities with backward integration, accounting for nearly 25% of its annual turnover. Ipca has also emerged as one of India’s top exporters of APIs, serving over 70 countries around the globe.
It’s API’s include a good portfolio of chronic segment consisting of a wide range of Anti-Hypertensive, Cholesterol, Diabetes…
The API list is as per the attached link…
It came out with an excellent set of numbers in Q1,2021 which people carry an impression is due to infamous HCQS sale for Covid19…while India and many countries still continue to use HCQS in mild to moderate cases and some patients do respond to the drug… but since USFDA has withdrawn its approval for Covid19, it has earned a bad name…
However, if you look at the revenue and profit figures and return ratio’s after removing HCQS revenues, still the numbers are an excellent set of numbers…
It has Compounded net profit growth of 52% over last 3 years. Debt free company with 46% promoter holding.
The management has given guidance for Overall sales are expected to grow 18–19% YoY in FY21, with 10–12% growth in the DF business, a 20% YoY increase in API, and better opportunities in Export Formulations. Gross margins are expected to expand 100–150bps YoY in FY21 on lower raw material cost and a product mix change…
Discl: Invested @ 1200 level a year back…I have never sold this stock. …may be biased. Please apply your due diligence before investing your Hard earned money in stock market .
Ipca Laboratories has acquired an additional 13.09% taking its total holding to 52.35% of the paid-up equity share capital of Mumbai-based Trophic Wellness Private limited (TWPL), a company into nutritional and wellness products.
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IPCA Laboratories informed the exchange, “TWPL is engaged in the business of manufacturing and marketing of several SKUs of Nutraceuticals under the brandname Nutricharge. The company’s manufacturing facility is situated at Sikkim.”
Amitabh Bachchan is the brand ambassador of Nutricharge. Maybe he has facilitated the deal.
The latest US Generics pricing pressure is a dampener on all pharma stocks which are heavily dependent on US Generics. The recent examples Alembic Pharma, Dr Reddy and Strides. Strides has to wind up one facility. There is one stock which I can bet on is IPCA labs as an investment in this scenario . This is well insulated and also posted good numbers in the Q1FY22. I am also posting the weekly Chart where it has taken support and now moving up. Probably it can make a new high. My analysis is always Techno Funda
