IPCALAB - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.9

📊 Chart Patterns: IPCALAB is trading slightly above its 50 DMA (1,398 ₹) and 200 DMA (1,392 ₹), showing stability. Price action suggests consolidation with support near 1,400 ₹ and resistance around 1,470–1,500 ₹.

📈 Moving Averages: Current price (1,431 ₹) is above both 50 DMA and 200 DMA, indicating mild bullish undertone.

📉 RSI: At 47.4, RSI is neutral, suggesting balanced momentum without strong overbought or oversold signals.

📈 MACD: Positive (13.0) indicates bullish crossover, supporting short-term upward momentum.

📊 Bollinger Bands: Price is near the mid-band, suggesting consolidation with potential breakout if volume strengthens.

📊 Volume Trends: Current volume (1.00 lakh) is slightly lower than 1-week average (1.12 lakh), showing reduced participation but stable trading activity.

📌 Momentum Signals: Mild bullish momentum; rebound possible if price sustains above 1,420 ₹.

🎯 Entry Zone: 1,420–1,440 ₹ (near support and DMA levels).

🎯 Exit Zone: 1,470–1,500 ₹ (near resistance trendline).

🔎 Trend Status: Consolidating with bullish bias.

Positive

• Quarterly PAT growth of 24.8% (₹305 Cr vs ₹262 Cr).
• EPS of 30.3 ₹ supports valuation strength.
• DII holdings increased (+0.57%), showing domestic institutional support.
• Debt-to-equity ratio is low (0.11), showing financial stability.

Limitation

• High P/E ratio (37.5) compared to industry PE (30.6), suggesting overvaluation.
• PEG ratio is negative (-51.4), indicating poor growth-adjusted valuation.
• ROCE (17.6%) and ROE (12.6%) are moderate compared to peers.
• Volume participation is slightly below average, limiting breakout strength.

Company Negative News

• Decline in FII holding (-0.25%) shows reduced foreign investor confidence.
• High valuation metrics (P/E and negative PEG) raise concerns about sustainability of current price levels.

Company Positive News

• Quarterly profits improved significantly (₹305 Cr vs ₹262 Cr).
• DII inflows (+0.57%) highlight domestic institutional confidence.
• Strong fundamentals with low debt and stable earnings growth.

Industry

• Industry PE at 30.6 is lower than IPCALAB’s P/E (37.5), suggesting premium valuation.
• Pharmaceutical sector outlook remains positive with strong demand and global expansion opportunities.

Conclusion

⚖️ IPCALAB is consolidating near support levels with mild bullish signals from MACD and moving averages. Traders may consider entry around 1,420–1,440 ₹ with exit near 1,470–1,500 ₹. Long-term investors benefit from profit growth, low debt, and sector tailwinds, though high valuation and reduced FII confidence remain concerns.