*Key conference call highlights of IPCA Laboratories Ltd. Management*
*CMP Rs2535, MCap Rs321bn*
*Growth guidance:* Overall 8-10% growth for FY22E.
Domestic – 16% to 18% growth in top Line,
Export – business should grow between 12-14% in FY22E
Institutionl – Good growth expected – Rs 400 crs in FY22E
Gerneric & EU to grow at 5-6% growth, over stocking in EU generic business,
API – 8-9% growth, Domestic API – 14-15% growth expected for FY22
EBITDA margin should be in the range of 25%-26% in FY22E and expects improvement with further normalization for FY23E.
*Branded business* – product offering and MR count is likely to increase with more normalization and 15% growth YoY.
*API* to grow in the range of 9-10% for next 4-5 years. As intermediate prices move up the prices have also increased for the final products.
*Institutional business* is limited to only to Anti-malaria therapy and around Rs 500-550crs revenue is expected per year. Institutional – 60% ALDT and 40% conventional products, injectable is also contributing significantly (started since last year)
*Plant audit* – local audit won’t be conduct by FDA and no any intimation has received about the same, Company has completed all the remediation related work.
*DEWAS plant* expected to be commercially operational from Q1FY23E.
US is a big and important market for company and due to pandemic situation the plants remained uninspected hence no exposure to the US market, but management is very confident that once inspection thing get resolved which led to its entry in the US market, will disrupt the market favorably with backward integration and is hopeful to achieve good amount of market share gain in the market.
*Capex* – INR 400 cr each year for next 3 years
Company has created front end office at US for marketing purpose but due to its pending inspection is not in market so no any gain from the plant/outlet.
*Long term Outlook:*
Company is seriously looking to produce more intermediates, to grow internationally where opening up of US market will be an addition to company’s overall strategy. Cash flow is primarily to be used for acquisition in the US with better offerings and reasonable pricing in India.
Company is not ignoring any market as its aim is to become vertically integrated and its developing its value chain with few API (India & ROW), also focusing on low COGS as well as gaining market share in generic market.
Pain management, Hypertension, Cardiac, Derma, Ophthalmic and Specialty product segments likely to be more focused going forward with timely addition in MR strength.
*CMP Rs2535, MCap Rs321bn*
*Growth guidance:* Overall 8-10% growth for FY22E.
Domestic – 16% to 18% growth in top Line,
Export – business should grow between 12-14% in FY22E
Institutionl – Good growth expected – Rs 400 crs in FY22E
Gerneric & EU to grow at 5-6% growth, over stocking in EU generic business,
API – 8-9% growth, Domestic API – 14-15% growth expected for FY22
EBITDA margin should be in the range of 25%-26% in FY22E and expects improvement with further normalization for FY23E.
*Branded business* – product offering and MR count is likely to increase with more normalization and 15% growth YoY.
*API* to grow in the range of 9-10% for next 4-5 years. As intermediate prices move up the prices have also increased for the final products.
*Institutional business* is limited to only to Anti-malaria therapy and around Rs 500-550crs revenue is expected per year. Institutional – 60% ALDT and 40% conventional products, injectable is also contributing significantly (started since last year)
*Plant audit* – local audit won’t be conduct by FDA and no any intimation has received about the same, Company has completed all the remediation related work.
*DEWAS plant* expected to be commercially operational from Q1FY23E.
US is a big and important market for company and due to pandemic situation the plants remained uninspected hence no exposure to the US market, but management is very confident that once inspection thing get resolved which led to its entry in the US market, will disrupt the market favorably with backward integration and is hopeful to achieve good amount of market share gain in the market.
*Capex* – INR 400 cr each year for next 3 years
Company has created front end office at US for marketing purpose but due to its pending inspection is not in market so no any gain from the plant/outlet.
*Long term Outlook:*
Company is seriously looking to produce more intermediates, to grow internationally where opening up of US market will be an addition to company’s overall strategy. Cash flow is primarily to be used for acquisition in the US with better offerings and reasonable pricing in India.
Company is not ignoring any market as its aim is to become vertically integrated and its developing its value chain with few API (India & ROW), also focusing on low COGS as well as gaining market share in generic market.
Pain management, Hypertension, Cardiac, Derma, Ophthalmic and Specialty product segments likely to be more focused going forward with timely addition in MR strength.
Indian Stock Market in 2021!
Nifty has outperformed the major stock market indices of world.
Nifty and Sensex still hitting record highs !!!
The reason:
1. Increase in vaccination, a crore people getting vaccinated on daily basis.
2. GST collection for the August month above Rs. 1 Lakh Crore.
3. A good economic recovery in India expected.
4. Strong global cues, especially US stock market index at record levels ie DOW JONES, S&P 500 and NASDAQ.
Charts: moneycontrol.com
Nifty has outperformed the major stock market indices of world.
Nifty and Sensex still hitting record highs !!!
The reason:
1. Increase in vaccination, a crore people getting vaccinated on daily basis.
2. GST collection for the August month above Rs. 1 Lakh Crore.
3. A good economic recovery in India expected.
4. Strong global cues, especially US stock market index at record levels ie DOW JONES, S&P 500 and NASDAQ.
Charts: moneycontrol.com
Much awaited PLI scheme for #auto sector is set to be announced next week, CNBC-TV18 learns #exclusively.
The scheme is aimed at enhancing competitiveness of India's vehicle & component manufacturers.
This was among the 10 sectors for which #PLI scheme was announced in Nov 2020
The scheme is aimed at enhancing competitiveness of India's vehicle & component manufacturers.
This was among the 10 sectors for which #PLI scheme was announced in Nov 2020
MARKET WIZARD NEWSLETTER ISSUE 26.pdf
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MARKET WIZARD NEWSLETTER ISSUE 26
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🎯Technical Stocks
▶️ Orissa Minerals Ltd
▶️ Salzer Electronics Ltd
▶️ S H Kelkar and Company Ltd
TEAM MARKET WIZARD
Whatsapp Group Link - https://chat.whatsapp.com/KffThphTOecK1XtF0PfWMU
🎯Fundamental Stocks
▶️ D B Corp Ltd
▶️ Ion Exchange (India) Ltd
▶️ JSW Ispat Special Products Ltd
▶️ RPP Infra Projects Ltd
🎯Technical Stocks
▶️ Orissa Minerals Ltd
▶️ Salzer Electronics Ltd
▶️ S H Kelkar and Company Ltd
TEAM MARKET WIZARD
Whatsapp Group Link - https://chat.whatsapp.com/KffThphTOecK1XtF0PfWMU