Pharma stock trading at a discount of 23% from the high, 400% dividend declared

The company has said today in a stock exchange filing that “We wish to inform you that, the Board has declared an interim dividend of Rs. 4/- per share (400%) for the financial year 2022-23. Kindly note that vide our letter dated November 2, 2022, we have already informed you that 23rd November, 2022 has been fixed as the Record Date for ascertaining the members entitlement of said interim dividend now declared which will be paid by the Company to the eligible shareholders on or before 7th December, 2022.”

For Q2FY23 and on a standalone basis, the company declared net sales of ₹1484.88 Cr compared to ₹1423.84 Cr in Q2FY22 and ₹1469.28 Cr posted in Q1FY23 representing a YoY growth of 4.28% and a QoQ growth of 1.06%. The net profit of the company declined 34.88% YoY to ₹167.78 crore in Q2FY23 from ₹257.64 Cr posted in Q2FY22 and on a QoQ basis the net profit climbed by 16.65% from ₹143.82 Cr posted in the quarter ended June 2022. The EPS stood at ₹6.61 per share in Q2FY23 compared to ₹5.67 in Q1FY23 and ₹10.16 in Q2FY22.

On a consolidated basis, the company declared revenue from operations of ₹1600.95 Cr in Q2FY23 compared to ₹1544.43 Cr in Q2FY22 and ₹1585.74 Cr in Q1FY23, representing a YoY growth of 3.65% and a QoQ growth of 0.95%. The company declared a net profit of ₹143.90 Cr in Q2FY23 compared to ₹143.06 Cr in Q1FY23 and ₹250.23 Cr in Q2FY22, representing a YoY fall of 42.49% and a QoQ growth of 0.58%. The EPS stood at ₹5.67 per share in Q2FY23 compared to ₹5.64 in Q1FY23 and ₹9.66 posted in Q2FY22.

The shares of IPCA Laboratories Ltd closed today at ₹865.00 apiece, down by 2.63% from the previous close of ₹888.35. In trade today the stock recorded a total volume of 782,521 shares compared to the 20-Day average volume of 220,772 shares. On the NSE, the stock had touched a 52-week-high of ₹1,128.50 on (10-January-2022) and a 52-week-low of ₹831.05 on (13-June-2022), indicating that at the current market price the stock is trading 23.34% below the high and 4.08% above the low. For the quarter ended September or Q2FY23, the company reported a promoter shareholding of 46.29%, FIIs stake of 10.57%, DIIs stake of 33.46%, a Government stake of 0.32% and a public stake of 9.34%.