IPCALAB - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 My Thought Process

You're asking for a full-spectrum fundamental analysis of Ipca Laboratories Ltd (IPCALAB), with a numeric rating and strategic investment guidance. I’ve weighed profitability, capital efficiency, valuation, and business durability, and factored in recent quarterly performance, technical signals, and valuation metrics as of September 2025.

📊 Fundamental Analysis of Ipca Laboratories Ltd

🔍 Core Financials

Profitability

PAT Qtr: ₹262 Cr vs ₹134 Cr — strong sequential growth (↑28.4% YoY).

EPS: ₹27.9 — solid earnings base.

ROE: 12.6%, ROCE: 17.6% — respectable capital efficiency for a mid-cap pharma player.

Leverage & Liquidity

Debt-to-equity: 0.13 — low leverage, indicating strong financial health.

Dividend Yield: 0.30% — modest, with consistent payouts.

Cash Flow & Stability

Strong operating margins and improving profitability.

Book value: ₹272 vs current price of ₹1,341 — P/B ratio ~4.93, suggesting premium valuation.

Delivery percentage of 59% indicates investor confidence in price appreciation

1

.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 37.4 Slightly overvalued vs industry PE of 33.4

P/B Ratio ~4.93 High — reflects brand strength and earnings potential

PEG Ratio -51.3 Not meaningful due to volatility in earnings

Intrinsic Value ~₹1,300–₹1,350 Near current price — limited upside

💊 Business Model & Competitive Edge

Segment Focus: Formulations and APIs across therapeutic areas — anti-infectives, pain management, and cardiovascular.

Moat: Integrated manufacturing, strong export footprint, and regulatory approvals (USFDA, UKMHRA).

Growth Drivers

31.8% quarterly revenue growth with 7% profit margin

2

.

High-quality score (95/100) and strong financial durability

3

.

Expansion in specialty generics and institutional business.

📈 Technical & Entry Guidance

Current Price: ₹1,341

DMA 50/200: ₹1,377 / ₹1,405 — trading below both, indicating bearish momentum.

RSI: 45.7 — mildly oversold.

MACD: -23.7 — bearish crossover.

🎯 Entry Zone

Ideal Buy Range: ₹1,280–₹1,320 — near support and intrinsic value.

Stop Loss: ₹1,240

Target: ₹1,500–₹1,580 in medium term

🕰️ Long-Term Holding Outlook

Hold if invested: Strong fundamentals, low debt, and export-driven growth support long-term value.

Buy on dips: Preferably near ₹1,300 zone.

Growth Triggers: API expansion, regulatory approvals, and institutional orders.

⭐ Fundamental Rating

4.2

You can explore Ipca’s valuation and technical breakdown or check its live financial dashboard for deeper insights

1

3

.

1

stocks-buy.com

2

stockpricearchive.com

3

trendlyne.com

Edit in a page