Q2FY11 preview for IPCA Labs by Centrum,

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IPCA Labs (Rating – Hold; Target Price – Rs288)
􀂁 We expect a strong turnaround in this quarter after a somewhat dismal show in Q1 and expect
the company to have benefitted heavily from the outburst of malaria in the country. We expect
net sales to improve by 16.8% YoY (and 20.2% QoQ) basis to Rs5bn.
􀂁 The company is expected to improve its operational EBIDTA by 51.7% on a QoQ basis,, thereby
bringing the EBIDTA margin to 21.5%.
􀂁 We also expect the company to report an adjusted PAT of Rs684mn, a 6.4% increase YoY.
􀂁 Adj PAT is expected to improve by 66.4% on a QoQ basis.