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IPCA Labs share rises 5% despite weak Q1 earnings, here's why

IPCA Labs share rises 5% despite weak Q1 earnings, here's why

The pharma stock touched an intraday high of Rs 2,279.3 , rising 4.91% against previous close of Rs 2,172.65 on BSE

Ipca Labs share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Market cap of the firm rose to Rs 28,562 crore. Ipca Labs share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Market cap of the firm rose to Rs 28,562 crore.

Ipca Laboratories share rose 5% percent on August 9 as global broking firm CLSA raised the stock's rating to outperform from sell. It also hiked the target price to Rs 2,400 a share.

Motilal Oswal too has turned positive on the company after its Q1 earnings.

The large cap stock has gained 8.31% in three sessions. The stock touched an intraday high of Rs 2,279.3 , rising 4.91% against previous close  of Rs 2,172.65 on BSE.

Ipca Labs share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Market cap of the firm rose to Rs 28,562 crore.

Total 0.35 lakh shares changed hands amounting to turnover of Rs 7.81 crore on BSE.

The pharma share has gained 15.3% in one year and risen 3% since the beginning of this year.

CLSA said Q1FY22 results were above its and consensus forecasts and all business segments performed above expectations.


Morgan Stanley maintained an equal-weight rating, with the target at Rs 2,203 a share.

The company has significantly improved its core business over the last couple of years. The high margin and fair valuation multiples will cap profit growth beyond FY23. However, US remediation is unlikely in the near term, Morgan Stanley said.

Financial services firm Motilal Oswal is positive on the company after its Q1 earnings.

Enhanced marketing efforts driving sustainable industry beating growth in DF, backward integration and efficient manufacturing in the API segment and addition of products/new tender wins in the institutional segment are some of the reasons cited by the brokerage for its positive stance on the stock.

 It gave a buy call of Rs 2,400 for the share.

Ipca Laboratories reported a 31.19 per cent fall in its consolidated net profit to Rs 306.67 crore, mainly on account of rise in expenses.

Net profit came in at Rs 445.68 crore from the continuing operations for the corresponding period of the previous fiscal.

Total income of the company stood at Rs 1,586.81 crore in Q1 against Rs 1,546.49 crore for the same period a year ago.

Total expenses of the company rose to Rs 1,206.94 crore in Q1 against Rs 999.85 crore for the year ago period.