Ipca Laboratories
BSE SENSEX
41,170
S&P CNX
12,081
25 February 2020
Update | Sector: Healthcare
CMP: INR1426
A dose of growth
TP: INR1,660(+16%)
Buy
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
IPCA IN
126
180.2 / 2.5
1508 / 784
20/43/67
206
53.9
We recently met management of Ipca Laboratories (IPCA) to understand the growth
prospects in the business and ascertain the impact of the ongoing coronavirus outbreak-
led supply disruption.
IPCA appears well positioned to deliver strong earnings CAGR of 26% over FY19-22,
led by its strong outperformance in Domestic Formulation (DF), improved prospects
in API and revival in International Generics.
We value IPCA at 22x 12M forward earnings to arrive at a price target of INR1,660.
Superior execution, lower financial leverage and healthy return ratios reinforce our
positive stance on the company. Reiterate Buy.
Financials Snapshot (INR b)
Y/E MARCH
2020E 2021E 2022E
46.6 53.3 60.4
Sales
9.5 11.4 13.1
EBITDA
6.5 8.0 9.2
Adj. PAT
EBIT Margin (%)
16.1 17.5 18.1
Cons. Adj. EPS (INR) 51.5 63.1 72.9
42.0 22.5 15.5
EPS Gr. (%)
291.8 345.5 407.5
BV/Sh. (INR)
Ratios
Net D:E
0.1 0.1 0.1
19.1 19.8 19.4
RoE (%)
17.7 18.4 18.3
RoCE (%)
Payout (%)
14.9 15.0 15.0
Valuations
27.7 22.6 19.6
P/E (x)
18.7 15.2 12.8
EV/EBITDA (x)
Div. Yield (%)
0.6 0.7 0.8
FCF Yield (%)
2.6 3.2 3.7
3.8 3.3 2.8
EV/Sales (x)
Shareholding pattern (%)
As On
Dec-19 Sep-19 Dec-18
Promoter
46.1
46.1
46.1
DII
25.9
24.1
24.8
FII
14.0
16.1
15.8
Others
14.0
13.7
13.4
FII Includes depository receipts
Stock Performance (1-year)
Ipca Labs.
Sensex - Rebased
1,500
1,200
900
600
DF – on a robust growth trajectory
IPCA remains confident that it will outperform industry with 14-15% CAGR in
DF segment over the next three years. The plan to add 250-300 MRs over the
next 6-9 months emphasizes its incessant focus on this segment.
Pain management prospects appear particularly promising, with IPCA
comfortably surpassing industry growth (8-10%) with a CAGR of 17% over
FY14-19 and 20% growth in 9MFY20. Growth in this therapy is mostly volume
driven (70-75%), implying its sustainability over the next 3-4 years. IPCA plans
to add two more SKUs in pain management in FY21.
The Zerodol group of brands has reached a revenue size of ~INR4b with
potential to double over 3-4 years. While Zerodol brand is not included under
NLEM, the price risk is minimal as product pricing under this brand is already
lower than peers.
IPCA has done well in rheumatoid arthritis and enhancing its efforts in terms of
training and educating doctors for disease modifying anti-rheumatic drugs.
Specifically, nearly 230MRs are dedicated for this therapy with intensive
patient engagement.
Another promising product is chlorthalidone and its combination, which has
reached a revenue size of INR1b in the past four years with attractive medium-
term potential. According to management, chlorthalidone is a proven (after
study/trials) better substitute to hydrochlorothiazide to treat hypertension
with advantage such as (a) longer half-life and thus prolonged effect and (2)
need for lower concentration for similar effect.
Also, the promotion of HCQs in diabetes is gaining acceptance, driving growth
in this product.
The proportion of seasonality led anti-malaria segment declined sharply from
17% in FY13 to 6% in FY19 with further gradual reduction thereafter in
9MFY20.
API – in a capacity expansion mode
IPCA delivered strong 33% YoY growth in API segment in 9MFY20, led by robust
off-take in existing molecules and addition of new molecules (Sartans).
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Tushar Manudhane - Research Analyst
(Tushar.Manudhane@MotilalOswal.com); +91 022 6129 1536
Hitakshi Chandrani - Research Analyst
(Hitakshi.Chandrani@motilaloswal.com);
02261291557
 Motilal Oswal Financial Services
Ipca Laboratories
Considering increasing demand for captive consumption and external sales, the
company has earmarked capex of INR2.5b over the next 12-15 months to
enhance API and intermediates capacity.
Accordingly, IPCA has acquired land at Dewas (35 Acres) and is in the process to
get environment clearance, which would take 6-8 months. Considering the time
needed to install equipment and build infrastructure, we expect this site to be
commercialized by FY22.
In addition, the company has acquired Nobel Explochem recently with the
intention to manufacture key starting materials, APIs and thus reduce
dependency on external sourcing. Nobel assets consist of free-hold land of 690
acres, leasehold land of 180 acres and forest land of 239 acres. It also provides
access to nitration chemistry to be used for developing/commercializing APIs. It
would take about two years for production to begin from this site.
International generics business was on a downtrend since FY15 due to
distributor-related issues in the UK and import alert at facilities for US generics.
While the US business remains shut, IPCA has been able to revive Europe
business with resolution of regulatory issues faced by its distributor.
In fact, IPCA delivered 23% YoY growth in this segment for 9MFY20. Further, it
has been increasing penetration in EU using products approved in the UK.
The company also intends to sell dossiers with or without supply agreements.
The formulations being sold in EU are backed by its own API, providing better
negotiating power and profitability.
IPCA also continues leveraging the CRAMS skillset of its subsidiary Onyx
Scientific toward research services. It is enhancing infrastructure of Onyx to
cater to increasing orders from existing customers and addition of new
customers.
Recently, Pisgah Lab got its first synthetic development contract and further
ramp-up would drive a turnaround of business.
IPCA continues providing feedback on CAPA to the USFDA and is awaiting
inspection at its sites under import alert.
Supplies of KSM/intermediates from certain provinces of China have resumed.
Further, with the onset of summer, the effect of coronavirus on humans is likely
to subside, according to management.
However, IPCA continues to keep track of the situation: even though the value
of some materials procured from China might not be meaningful, they could be
critical for the process of manufacturing API/formulation.
We value IPCA at 22x 12M forward earnings to arrive at a price target of
INR1,660. Superior execution, lower financial leverage and healthy return ratios
reinforce our positive stance on the company. Reiterate
Buy.
International generics – gaining considerable traction
Other key highlights
Valuation and view
25 February 2020
2
 Motilal Oswal Financial Services
Ipca Laboratories
Domestic Formulation: Story in charts
Exhibit 1: Pain dominates the DF portfolio
Cough Neuro/CNS Urology
3%
4%
3%
Gastro
4%
Derma
Pain
5%
46%
Anti-bacterials
7%
Anti-malarials
6%
Cardiac & Anti-
Diabetic
20%
Source: Company, MOFSL
Exhibit 2: We expect industry outperformance over
FY19-22
DF Revenues (INRb)
16.4
10.4
8.3
2.7
9.7
11.3
12.2
13.9
14.3
16.5
18.7
21.6
24.7
16.0
YoY growth (%)
13.6
13.1
15.5
14.4
FY14 FY15 FY16 FY17 FY18 FY19E FY20E FY21E FY22E
Source: Company, MOFSL
Volume
Exhibit 3: Top-5 brands in Pain together saw 12% YoY growth for MAT Jan’20
Share in company IPCA YoY growth Molecule YoY
portfolio
MAT Jan-20
MAT Jan-20
Value
Zerodol SP
Zerodol P
Zerodol TH
Zerodol
Zerodol MR
Pacimol
Lefno
Etova
9.6%
6.2%
2.6%
1.6%
1.5%
1.5%
1.2%
1.0%
17%
11%
13%
-5%
5%
29%
19%
6%
IPCA CAGR MAT
Jan16-20
12%
19%
8%
-2%
4%
19%
13%
27%
17.6%
11.2%
19.8%
0.9%
5.4%
14.9%
15.1%
15.2%
Molecule CAGR
MAT Jan16-20
% share in
molecule
CAGR MAT MAT Unit gr
Jan 16-20
Jan 20
13.0%
9.0%
12.0%
-1.0%
5.0%
11.0%
6.0%
14.0%
53.1%
38.2%
42.7%
45.2%
97.6%
2.5%
43.5%
24.1%
12%
6%
15%
-5%
1%
12%
17%
10%
10%
2%
7%
-13%
-2%
20%
15%
3%
Source: MOFSL, Company
Exhibit 4: IPCA outperformed its covered market growth significantly on YoY basis for MAT Jan’20
Therapy
Pain / Analgesics
Cardiac & Anti Diabetic
Anti Malarials
Gastro Intestinal
Derma
Urology
FY19 sales (INRm)
7,575
3,294
988
659
823
494
CVM CAGR MAT
Jan 15-20
10.1%
13.2%
0.4%
9.9%
13.9%
16.2%
IPCA CAGR MAT
Jan 15-20
16.9%
10.2%
4.9%
7.0%
18.1%
22.9%
CVM YoY MAT
IPCA YoY MAT
Jan-20
Jan-20
9.5%
9.9%
11.4%
8.0%
6.9%
12.8%
8.0%
2.0%
7.7%
18.4%
14.1%
22.7%
Source: MOFSL, Company
Exhibit 5: MR productivity on uptrend
sales per MR/month (In lacs)
2.9
1.9
2.2
2.2
2.8
3.2
3.3
3.8
Source: MOFSL, Company
25 February 2020
3
 Motilal Oswal Financial Services
Ipca Laboratories
Other Business: Story in charts
Exhibit 6: Expect API revenue CAGR of 17% over FY19-22
API (INR b)
11.5
7.6
6.9
6.5
7.1
7.5
8.8
-16.5
-16.2
3.3
FY14
Source: MOFSL, Company
2.7
FY15
2.3
2.8
3.2
FY18
3.6
4.2
4.8
5.4
12.9
14.0
Exhibit 7: Expect International Branded revenue CAGR of
14% over FY19-22
International Branded (INR b)
33.2
24.0
13.5
12.7
YoY gr(%)
16.1
14.9
11.3
FY16 FY17
FY19 FY20E FY21E FY22E
Source: MOFSL, Company
Exhibit 8: Expect International Generics revenue CAGR of
18.5% over FY19-22
International Generic (INRb)
24.3
3.2
-18.7
-0.2
1.2
-9.9
29.6
15.0
11.8
YoY gr(%)
Exhibit 9: Expect Insti. Anti-malaria revenue CAGR of 31.5%
over FY19-22
Insti. Anti -Malaria (INRb)
21.9
4.9
YoY gr(%)
50.0
9.7
7.5
-40.5
21.2
25.0
-53.8
1.2
1.3
1.6
1.6
2.0
2.5
3.8
6.9
7.1
5.7
5.7
5.2
5.2
6.8
7.8
8.7
4.4
2.6
FY14 FY15 FY16 FY17 FY18 FY19 FY20E FY21E FY22E
Source: MOFSL, Company
FY14 FY15 FY16 FY17 FY18 FY19 FY20E FY21E FY22E
Source: MOFSL, Company
25 February 2020
4
 Motilal Oswal Financial Services
Ipca Laboratories
Story in charts
Exhibit 10: Expect revenue CAGR of 17% over FY19-22
Sales (INR b)
YoY growth (%)
Exhibit 11: EBITDA margin to improve ~130bp over FY19-22
EBITDA margin (%)
24.7
13.3
16.8
11.8
19.0
13.9
13.8
20.4
21.7
23.6
16.7
11.3
-4.3
2.3
-8.2
29
FY16
32
FY17
33
FY18
38
47
53
60
14.9
14.3
21.4
33
FY14
31
FY15
FY19 FY20E FY21E FY22E
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 12: FCF improving
Free cash-flow (INR m)
10,527
4,712
5,771 6,612
Exhibit 13: Expect earnings CAGR of 26% over FY19-22
Core EPS (INR/ share)
2,023
1,420 1,561
3,014
-2,842
FY14
FY15
FY16
FY17
FY18
FY19 FY20E FY21E FY22E
Source: MOFSL, Company
37.5
FY14
19.8
FY15
10.5
FY16
16.1
FY17
19.0
FY18
36.3
51.5
63.1
72.9
FY19 FY20E FY21E FY22E
Source: MOFSL, Company
Exhibit 14: RoE to improve gradually
26.9
RoE (%)
19.1
15.8
12.0
5.9
8.6
9.3
19.8
19.4
FY14
FY15
FY16
FY17
FY18
FY19
FY20E
FY21E
FY22E
Source: MOFSL, Company
25 February 2020
5
 Motilal Oswal Financial Services
Ipca Laboratories
Financials and Valuations
Income Statement
Y/E March
Net Revenues
Change (%)
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income - Rec.
PBT before EO Expense
EO Expense/(Income)
PBT after EO Expense
Current Tax
Deferred Tax
Tax
Tax Rate (%)
Reported PAT
Less: Minority Interest
Net Profit
Adj PAT
Adj PAT growth (%)
Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Deferred liabilities
Total Loans
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Investments
Curr. Assets
Inventory
Account Receivables
Cash and Bank Balance
Loans & Advances
Curr. Liability & Prov.
Account Payables
Provisions
Net Current Assets
Appl. of Funds
FY14
32,818
16.7
8,106
24.7
1,031
7,074
269
-500
6,306
0
6,306
1,357
167
1,524
24.2
4,782
49
4,733
4,733
46.3
FY15
31,418
-4.3
5,291
16.8
1,796
3,495
284
358
3,569
-42
3,611
747
272
1,019
28.6
2,592
49
2,542
2,501
-47.2
FY16
28,850
-8.2
3,417
11.8
1,722
1,695
316
169
1,548
395
1,153
228
-42
186
12.0
967
35
933
1,328
-46.9
FY17
32,106
11.3
4,448
13.9
1,730
2,718
241
226
2,703
0
2,703
533
142
675
25.0
2,028
0
2,028
2,028
52.8
FY18
32,836
2.3
4,547
13.8
1,777
2,770
240
418
2,948
0
2,948
614
-102
511
17.3
2,436
42
2,394
2,394
18.1
FY19
37,732
14.9
7,170
19.0
1,824
5,346
189
483
5,640
157
5,483
1,218
-176
1,042
18.5
4,441
18
4,423
4,580
91.3
FY20E
46,618
23.6
9,510
20.4
1,993
7,517
176
530
7,871
-91
7,962
1,181
157
1,338
17.0
6,624
30
6,595
6,503
42.0
FY21E
53,287
14.3
11,403
21.4
2,083
9,320
170
510
9,660
0
9,660
1,497
193
1,690
17.5
7,969
0
7,969
7,969
22.5
(INR M)
FY22E
60,361
13.3
13,098
21.7
2,165
10,933
163
525
11,295
0
11,295
1,864
226
2,089
18.5
9,204
0
9,204
9,205
15.5
(INR M)
FY22E
252
51,175
51,427
2034
3,514
56,975
32,157
13,193
18,964
361
1,204
51,169
18,648
11,348
15,666
5,507
14,723
13,555
1,168
36,446
56,975
FY14
252
19,344
19,597
1471
4,379
25,447
19,321
5,785
13,536
1,649
92
16,827
8,476
4,495
763
3,093
6,656
5,950
706
10,171
25,447
FY15
252
21,832
22,084
1743
8,286
32,113
25,463
7,459
18,004
2,672
162
17,285
9,266
3,530
1,248
3,242
6,011
5,471
540
11,275
32,113
FY16
252
22,340
22,592
1565
6,691
30,848
22,121
1,628
20,493
936
258
17,230
8,374
4,459
1,755
2,641
8,069
7,245
824
9,160
30,848
FY17
252
24,300
24,553
1705
5,290
31,548
23,508
3,350
20,158
621
1,358
17,458
8,822
5,002
359
3,276
8,047
7,141
906
9,410
31,548
FY18
252
26,633
26,886
1580
4,731
33,196
24,969
5,127
19,842
418
869
20,027
8,806
6,023
1,506
3,693
7,960
7,029
931
12,068
33,196
FY19
252
30,971
31,224
1457
3,505
36,342
26,657
6,951
19,706
361
1,204
24,217
10,725
6,815
2,823
3,854
9,147
8,190
957
15,070
36,342
FY20E
252
36,577
36,829
1615
3,820
42,264
28,157
8,944
19,213
361
1,204
32,756
13,498
8,505
6,500
4,253
11,270
10,368
902
21,486
42,264
FY21E
252
43,351
43,603
1808
3,748
49,158
30,657
11,028
19,630
361
1,204
41,142
15,725
9,723
10,833
4,861
13,178
12,147
1,031
27,964
49,159
25 February 2020
6
 Motilal Oswal Financial Services
Ipca Laboratories
Financials and Valuations
Ratios
Y/E March
EPS (INR)
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Debtor (Days)
Inventory (Days)
Working Capital Turnover (Days)
Leverage Ratio (x)
Interest Cover Ratio
Debt/Equity
Cash Flow Statement
Y/E March
Oper. Profit/(Loss) before Tax
Interest/Dividends Recd.
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
CF from Oper. incl EO Exp.
(inc)/dec in FA
Free Cash Flow
(Pur)/Sale of Investments
CF from Investments
(Inc)/Dec in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
FY14
37.5
45.7
155.3
5.9
15.4
38.1
9.2
5.6
22.7
0.4
26.9
22.3
24.9
2.7
50
94
105
26.3
0.2
FY15
19.8
34.4
175.0
1.2
5.9
72.2
8.2
6.0
35.4
0.1
12.0
10.1
9.8
2.0
41
108
116
12.3
0.4
FY16
10.5
21.0
179.0
0.0
0.0
135.9
8.0
6.4
54.2
0.0
5.9
5.5
5.3
1.5
56
106
94
5.4
0.3
FY17
16.1
29.8
194.6
2.3
14.4
89.0
7.4
5.8
41.7
0.2
8.6
7.5
7.1
1.6
56
100
103
11.3
0.2
FY18
19.0
33.1
213.0
2.9
14.7
75.4
6.7
5.6
40.4
0.2
9.3
8.6
7.7
1.6
66
98
117
11.5
0.2
FY19
36.3
49.5
247.4
5.3
14.9
39.4
5.8
4.8
25.3
0.4
15.8
14.3
14.0
1.9
65
104
118
28.3
0.1
FY20E
51.5
68.1
291.8
7.9
14.9
27.7
4.9
3.8
18.7
0.6
19.1
17.7
18.9
2.4
66
106
117
42.8
0.1
FY21E
63.1
79.7
345.5
9.5
15.0
22.6
4.1
3.3
15.2
0.7
19.8
18.4
21.7
2.7
66
108
117
54.7
0.1
FY22E
72.9
90.1
407.5
11.0
15.0
19.6
3.5
2.8
12.8
0.8
19.4
18.3
23.3
3.1
68
113
126
66.9
0.1
(INR M)
FY22E
13,098
525
-1,864
-3,648
8,112
8,112
-1,500
6,612
0
-1,500
-234
-163
-1,381
0
-1,778
4,834
10,833
15,666
FY14
8,106
-500
-1,357
-339
5,910
5,910
-3,887
2,023
-1
-3,888
-854
-269
-738
20
-1,841
180
582
763
FY15
5,291
358
-747
-619
4,282
4,324
-7,166
-2,842
-70
-7,236
3,906
-284
-152
-73
3,398
486
763
1,248
FY16
3,417
169
-364
2,622
5,844
5,449
5,079
10,527
-96
4,982
-1,594
-316
0
-8,013
-9,923
508
1,248
1,756
FY17
4,448
226
-535
-1,647
2,491
2,491
-1,072
1,420
-1,100
-2,172
-1,401
-241
-292
217
-1,717
-1,397
1,755
358
FY18
4,547
418
-636
-1,510
2,819
2,819
-1,258
1,561
489
-768
-560
-240
-359
256
-903
1,147
359
1,506
FY19
7,170
483
-1,165
-1,686
4,803
4,646
-1,632
3,014
-336
-1,967
-1,070
-189
-663
561
-1,361
1,317
1,506
2,823
FY20E
9,510
530
-1,181
-2,738
6,121
6,212
-1,500
4,712
0
-1,500
159
-176
-989
-30
-1,035
3,677
2,823
6,500
FY21E
11,403
510
-1,497
-2,145
8,271
8,271
-2,500
5,771
0
-2,500
-72
-170
-1,195
0
-1,438
4,333
6,500
10,833
25 February 2020
7
 Motilal Oswal Financial Services
Ipca Laboratories
NOTES
25 February 2020
8
 Motilal Oswal Financial Services
Ipca Laboratories
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
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available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a
registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and
National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National
Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance
Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
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specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
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https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
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located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers
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dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
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The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
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For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
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Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
25 February 2020
9
 Motilal Oswal Financial Services
Ipca Laboratories
********************************************************************************************************************************
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
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This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
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customers by virtue of their receiving this report.
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in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.
The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
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the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make
modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to
perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of
information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or
may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,
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The person accessing this information specifically agrees to exempt MOFSL or any of its
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expenses that may be suffered by the person
accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;
Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance
Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
25 February 2020
10