Ipca Labs share price down over 11% in 3 days after Q4 result; should you buy or stay away?

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₹1234.85 against its previous close of ₹1,249.65 and fell nearly 7 per cent to the level of ₹1,168.10. Considering this price, the stock has declined 11.5 per cent in three sessions.During market hours on Wednesday, May 29, Ipca Labs reported a 22.12 per cent year-on-year (YoY) fall in Q4FY24 consolidated net profit to ₹59.59 crore compared to a profit of ₹76.52 crore in the same period last year.However, the company's revenue rose 34.5 per cent YoY to ₹2,033.01 crore compared with ₹1,511.63 crore in the same quarter last year.Also Read: IPCA Laboratories Q4 Results: Profit falls by 22.12% YoYBarring the recent selloff, Ipca Labs' share price has been on a roll in the last year, surging as much as 82 per cent till the May 30 close.The stock hit its 52-week high of ₹1,373.95 on April 18, 2024, and its 52-week low of ₹692.30 on June 26 last year.Several brokerage firms have given buy recommendations on the stock even though the company reported a fall in Q4 profit.Brokerage firm Nuvama Wealth Management retained a buy call on the stock but trimmed the target price to ₹1,438 from ₹1,480 earlier due to an 8 per cent cut in FY26E EPS (earnings per share).Also Read: Tata Steel share price: 3 Key reasons why Jefferies expects 19% upside post Q4 resultsNuvama observed that Ipca's management expects a nearly 18 per cent margin in FY25E that shall grow to nearly 21 per cent in FY27E."Over six to seven years, Ipca expects a 24–25 per cent EBITDA margin that can lead to 20–25 per cent CAGR in EBITDA.

This shall be achieved by cost optimisation, backward integration, new product launches, a partnership between IPCA and Unichem and a better revenue mix. While we remain optimistic, we cut FY25E and FY26E EPS by 14 per cent and 8 per