Emkay Research is expecting IPCA Lab and maintained buy rating on stock with a target of Rs 820.

IPCA Laboratories net profit increased to Rs 347.2 million in Q1FY08, by 42%, compared with Rs243.4mn in Q1FY07. Revenues grow by 11% to Rs.2466.1 million. Sequential Q-o-Q basis revenues and PAT increase by 12% and 26%.

EBIDTA margins for quarter grown by 420 bps to 22.6% in Q1FY08 on back of reduction in manufacturing and other expenses by 647 bps. NPM increase by 307bps to 14.07% in Q1FY08, due to decrease in interest expenses. Diluted EPS for Q1FY08 raise at RS 13.8.