IPCALAB - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.9
| Stock Code | IPCALAB | Market Cap | 35,805 Cr. | Current Price | 1,410 ₹ | High / Low | 1,595 ₹ |
| Stock P/E | 37.0 | Book Value | 292 ₹ | Dividend Yield | 0.28 % | ROCE | 17.6 % |
| ROE | 12.6 % | Face Value | 1.00 ₹ | DMA 50 | 1,443 ₹ | 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 | 41.4 | MACD | -6.80 | Volume | 1,22,653 | Avg Vol 1Wk | 2,19,550 |
| Low price | 1,168 ₹ | High price | 1,595 ₹ | PEG Ratio | -50.6 | Debt to equity | 0.11 |
| 52w Index | 56.6 % | Qtr Profit Var | 24.8 % | EPS | 30.3 ₹ | Industry PE | 29.1 |
📊 Ipca Laboratories (IPCALAB) shows steady fundamentals with improving profits, moderate ROCE (17.6%), and low debt levels. The stock is currently trading near its 200 DMA (1,410 ₹), with RSI at 41.4 indicating neutral-to-weak momentum and MACD at -6.80 showing bearish pressure. Valuation is slightly expensive (P/E 37.0 vs. industry 29.1), which limits upside potential. Overall, it is a moderately good candidate for swing trading with cautious entry.
💡 Optimal Entry Price: Around 1,390 ₹ – 1,410 ₹ (near 200 DMA support).
🚪 Exit Strategy: If already holding, consider exiting near 1,450 ₹ – 1,470 ₹ (resistance at 50 DMA) or place a stop-loss below 1,370 ₹.
✅ Positive
- Quarterly PAT growth from 262 Cr. to 305 Cr. shows earnings momentum.
- ROCE (17.6%) and ROE (12.6%) reflect decent capital efficiency.
- Low debt-to-equity ratio (0.11) ensures financial stability.
- DII holdings increased (+0.54%), showing domestic institutional support.
⚠️ Limitation
- Stock P/E (37.0) is higher than industry average (29.1), indicating overvaluation.
- MACD at -6.80 signals bearish momentum.
- Trading volume (1.22 lakh) lower than average (2.19 lakh), showing reduced activity.
- PEG ratio (-50.6) suggests weak growth prospects relative to valuation.
📉 Company Negative News
- Stock trading below 50 DMA (1,443 ₹), showing short-term weakness.
- Current price significantly below 52-week high (1,595 ₹), reflecting loss of momentum.
📈 Company Positive News
- Quarterly profit variation of 24.8% highlights strong earnings growth.
- EPS of 30.3 ₹ provides earnings visibility.
- FII holdings increased (+0.20%), showing foreign investor interest.
🏭 Industry
- Industry PE at 29.1 vs. IPCALAB PE at 37.0 suggests slight overvaluation compared to peers.
- Pharmaceutical sector remains resilient with steady demand drivers.
🔎 Conclusion
Ipca Laboratories is fundamentally stable with improving profits and low debt, but technicals show weakness and valuations are stretched. Swing traders may enter near 1,390 ₹ – 1,410 ₹ with a target around 1,450 ₹ – 1,470 ₹. Stop-loss below 1,370 ₹ is recommended. The stock offers moderate swing trade potential with a rating of 3.9.