IPCALAB - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.4

📉 IPCALAB is reversing from its highs with weak short-term momentum and bearish technical indicators, though recent earnings growth and strong fundamentals offer long-term support.

📊 Technical Analysis

• Trend Status: Reversing — price is below both 50-DMA and 200-DMA, indicating breakdown from previous uptrend.
• Moving Averages: Price ₹1,310 is below 50-DMA (₹1,332) and 200-DMA (₹1,383), confirming bearish pressure.
• RSI (39.4): Bearish zone, suggesting weak momentum and oversold conditions.
• MACD (-17.8): Strong bearish crossover, reinforcing downward momentum.
• Bollinger Bands: Price near lower band, indicating potential support but no reversal signal yet.
• Volume: Current volume (1.10L) is above weekly average (82.9K), showing increased activity during decline.

🎯 Entry & Exit Zones

• Support Levels: ₹1,280, ₹1,250, ₹1,168 (52-week low)
• Resistance Levels: ₹1,332 (50-DMA), ₹1,383 (200-DMA), ₹1,450
• Optimal Entry: ₹1,280–₹1,310 (on pullback)
• Exit Target: ₹1,383–₹1,450 (resistance zone)

✅ Positive

• ROCE (17.6%) and ROE (12.6%) reflect solid capital efficiency.
• EPS of ₹27.9 and quarterly PAT growth from ₹134 Cr to ₹262 Cr show strong earnings momentum.
• DII holdings increased by 0.57%, indicating domestic institutional confidence.
• Debt-to-equity ratio of 0.13 suggests strong financial stability.

⚠️ Limitation

• Price below key moving averages signals technical weakness.
• MACD and RSI show bearish momentum, limiting short-term upside.
• PEG ratio of -50.2 suggests valuation distortion or unreliable growth metrics.

📉 Company Negative News

• FII holdings declined by 0.25%, showing reduced foreign investor interest.
• Stock is down 25.5% from its 52-week high of ₹1,758, reflecting long-term underperformance.

📈 Company Positive News

• Quarterly profit variation of 28.4% reflects strong operational improvement.
• Price has rebounded 12.1% from its 52-week low of ₹1,168.

🏭 Industry

• Pharmaceutical sector remains resilient with consistent demand and innovation-driven growth.
• Industry P/E (33.1) is slightly lower than IPCALAB’s (36.6), suggesting moderate premium valuation.

🧾 Conclusion

• IPCALAB is reversing with weak technical momentum but strong earnings and financial fundamentals.
• Entry near ₹1,280–₹1,310 could offer tactical value with targets around ₹1,383–₹1,450.
• Investors should monitor RSI and MACD for signs of reversal and volume confirmation.