Ipca Laboratories: Ready to press restart button; Upside 26% | Buy Ipca Lab | IndiaNotes.com


We  expect  12%  YoY  earnings  growth  in  FY18E  despite  a)  GST-ridden  India formulation sales and  b)  withdrawal of FDA exception list for US exports, we believe that declining earnings has bottomed out since Q1FY18. The catalyst of recovery to be  driven  by  a)  resumption  of  supply  of  anti-malarial  drugs  to  private  funds  from Q1FY19E,  b)  USFDA  resolutions  of  three  plants,  c)  normalisation  of  India formulations and d) de-risking of API exports with commissioning of Baroda plant.

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