IPCALAB - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | IPCALAB | Market Cap | 35,658 Cr. | Current Price | 1,404 ₹ | High / Low | 1,595 ₹ |
| Stock P/E | 36.8 | Book Value | 292 ₹ | Dividend Yield | 0.28 % | ROCE | 17.6 % |
| ROE | 12.6 % | Face Value | 1.00 ₹ | DMA 50 | 1,445 ₹ | DMA 200 | 1,410 ₹ |
| Chg in FII Hold | 0.20 % | Chg in DII Hold | 0.54 % | PAT Qtr | 305 Cr. | PAT Prev Qtr | 262 Cr. |
| RSI | 39.5 | MACD | 0.86 | Volume | 70,713 | Avg Vol 1Wk | 1,19,611 |
| Low price | 1,168 ₹ | High price | 1,595 ₹ | PEG Ratio | -50.4 | Debt to equity | 0.11 |
| 52w Index | 55.2 % | Qtr Profit Var | 24.8 % | EPS | 30.3 ₹ | Industry PE | 29.0 |
💹 Core Financials: Ipca Laboratories shows moderate profitability with ROE at 12.6% and ROCE at 17.6%, below top-tier pharma benchmarks but stable. Quarterly PAT improved from ₹262 Cr. to ₹305 Cr., reflecting a 24.8% growth. Debt-to-equity ratio of 0.11 indicates low leverage, ensuring financial resilience. Dividend yield of 0.28% is minimal, suggesting limited shareholder payouts but reinvestment into operations.
📊 Valuation Indicators: Current P/E of 36.8 is significantly higher than the industry average of 29.0, indicating overvaluation. P/B ratio (~4.8) is elevated relative to book value. PEG ratio of -50.4 highlights weak growth-adjusted valuation, suggesting earnings growth is not keeping pace with price. Intrinsic value analysis points to the stock being expensive at current levels, with limited margin of safety.
🏢 Business Model & Competitive Advantage: Ipca Laboratories operates in the pharmaceutical sector, focusing on generics, APIs, and formulations. Its competitive advantage lies in diversified product offerings, global presence, and strong R&D capabilities. However, profitability pressures and valuation concerns limit near-term attractiveness despite sectoral resilience.
📈 Entry Zone: Technical indicators (DMA 50: ₹1,445, DMA 200: ₹1,410, RSI: 39.5, MACD: 0.86) suggest consolidation with mild bearish undertone. An attractive entry zone lies between ₹1,250–₹1,320, closer to its recent low of ₹1,168. Investors may accumulate gradually in this range for better risk-reward.
🕰️ Long-Term Holding Guidance: Ipca Laboratories offers stability with low debt and consistent profit growth. However, stretched valuations