Buy Ipca Laboratories for target Rs 965: Emkay
June 24th, 2008 | by Manufacturing Business |Buy Ipca Laboratories for target Rs 965: Emkay.
The lower growth in export is primarily because of fire in its Athal formulation manufacturing unit in the month of February, which has impacted revenue of Rs 15 crore in Jan-Mar 2007-08 and thus margins of the company.
Appreciation in currency (12% over FY07) coupled with lost of export revenues and 100 basis points increase in employee cost impacted EBIDTA margins by 90 basis points to 20.6 per cent. Profit after tax grew by 9 per cent to Rs 136 crore in 2007-08. Lower growth in profit after tax was on the back of loss in associates companies (Rs 3.93 crore in 2007-08 versus Rs 0.12 crore profit in 2006-07) because of increased filing cost in the regulated markets and loss of export revenues in Jan-Mar 2007-08.
Diluted EPS for 2007-08 stood at Rs 54.2 (up by 9% over corresponding period).
