Ipca Labs guide implies 11.9% to 14.5% growth for Q2 to Q4

Ipca Laboratories Limited raised its FY27 revenue growth guide to 14 to 16 percent on 13 August. After Q1 grew 20.8 percent, that implies only 11.9 to 14.5 percent for Q2 to Q4. My 17 September view, accumulate at Rs 1,889 to 1,920, still stands. Q1 FY27 numbers (consolidated): - Revenue: Rs 2,788.10 crore, up 20.8% from Rs 2,308.85 crore - EBITDA: Rs 637.94 crore, up 50.2%; margin 22.88% vs 18.39% (company basis) - PAT: Rs 401.89 crore, up 72.3% YoY; EPS Rs 15.84 - FY27 guide: revenue growth 14 to 16% (from 12 to 13%); EBITDA margin about 23% (from 22%) FY26 revenue was Rs 9,646 crore, so the guide means Rs 10,997 to 11,190 crore for FY27. Less Q1, Q2 to Q4 must deliver Rs 8,209 to 8,402 crore against Rs 7,337 crore a year ago. The margin guide is already met at 22.88 percent, so the revenue line is the cautious one. Q2 results are not scheduled; last year's board met on 13 November. Ipca Labs [][***** shares closed at Rs 1,916.18 on 8 October on StockGro (NSE Rs 1,938.40), down 1.31 percent in a month and up 45.51 percent in a year. P/E 37.11; PEG 0.68; sector P/E near 44. The NSE high is Rs 2,038.00 on 22 September. My view: unchanged. Q1 ran at 20.8 percent and the guide needs 12 to 14 percent, so there is room to beat, but 37x trailing earnings already pays for some of it. Holders: hold. Fresh money: accumulate at Rs 1,889 to 1,920; the NSE close is 1 percent above that, so I would not chase. The Rs 1,975 to 2,001 band I flagged on 17 September was cleared on 22 September. My exit is a close below Rs 1,880. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.