⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
IPCALAB - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | IPCALAB | Market Cap | 39,274 Cr. | Current Price | 1,550 ₹ | High / Low | 1,624 ₹ |
| Stock P/E | 39.1 | Book Value | 292 ₹ | Dividend Yield | 0.26 % | ROCE | 17.6 % |
| ROE | 12.6 % | Face Value | 1.00 ₹ | DMA 50 | 1,487 ₹ | DMA 200 | 1,433 ₹ |
| Chg in FII Hold | 0.20 % | Chg in DII Hold | 0.54 % | PAT Qtr | 303 Cr. | PAT Prev Qtr | 305 Cr. |
| RSI | 57.7 | MACD | 22.3 | Volume | 2,72,043 | Avg Vol 1Wk | 4,44,268 |
| Low price | 1,168 ₹ | High price | 1,624 ₹ | PEG Ratio | -53.6 | Debt to equity | 0.11 |
| 52w Index | 83.8 % | Qtr Profit Var | 13.4 % | EPS | 31.7 ₹ | Industry PE | 27.6 |
📊 Core Financials
- Revenue Growth: Stable with PAT ₹303 Cr vs ₹305 Cr
- Profit Margins: Moderate with ROE at 12.6% and ROCE at 17.6%
- Debt Ratios: Low (Debt-to-Equity 0.11), manageable leverage
- Cash Flows: Dividend yield of 0.26% provides limited shareholder returns
- Return Metrics: Reasonable efficiency but below top-tier pharma peers
💹 Valuation Indicators
- P/E Ratio: 39.1 (well above industry average of 27.6, overvalued)
- P/B Ratio: ~5.3 (Price ₹1,550 / Book Value ₹292)
- PEG Ratio: -53.6 (negative, signals weak earnings growth outlook)
- Intrinsic Value: Appears stretched given current multiples
🏢 Business Model & Competitive Advantage
- Pharmaceutical company with diversified product portfolio
- Strong presence in generics and formulations
- Competitive advantage lies in scale and established distribution
📈 Entry Zone Recommendation
- Current Price: ₹1,550
- Support Zone: ₹1,450 – ₹1,500 (near DMA 50 & DMA 200)
- Long-term Holding: Suitable for moderate investors, but caution due to high valuation
✅ Positive
- Low debt ensures financial stability
- Consistent PAT performance
- Institutional investor confidence (FII +0.20%, DII +0.54%)
⚠️ Limitation
- P/E ratio significantly above industry average
- Negative PEG ratio reflects weak growth outlook
- Dividend yield is minimal
📉 Company Negative News
- Quarterly PAT flat (₹303 Cr vs ₹305 Cr), limited growth momentum
- Valuation multiples suggest overpricing
📈 Company Positive News
- Quarterly profit variation of 13.4% YoY shows steady growth
- MACD positive (22.3) indicates improving technical trend
🌐 Industry
- Pharmaceutical industry remains resilient with global demand
- Industry P/E at 27.6 highlights IPCALAB trading at a premium
🔎 Conclusion
IPCALAB demonstrates financial stability with low debt and consistent profitability, but stretched valuations and modest return ratios limit upside. Entry around ₹1,450–₹1,500 may provide a safer margin. Long-term holding is viable for investors seeking exposure to pharma, but growth outlook needs monitoring.