IPCALAB - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | IPCALAB | Market Cap | 35,658 Cr. | Current Price | 1,404 ₹ | High / Low | 1,595 ₹ |
| Stock P/E | 36.8 | Book Value | 292 ₹ | Dividend Yield | 0.28 % | ROCE | 17.6 % |
| ROE | 12.6 % | Face Value | 1.00 ₹ | DMA 50 | 1,445 ₹ | 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 | 39.5 | MACD | 0.86 | Volume | 70,713 | Avg Vol 1Wk | 1,19,611 |
| Low price | 1,168 ₹ | High price | 1,595 ₹ | PEG Ratio | -50.4 | Debt to equity | 0.11 |
| 52w Index | 55.2 % | Qtr Profit Var | 24.8 % | EPS | 30.3 ₹ | Industry PE | 29.0 |
📉 Chart & Trend Analysis: IPCALAB is trading at ₹1,404, below its 50 DMA (₹1,445) but slightly above the 200 DMA (₹1,410), showing mixed signals. RSI at 39.5 suggests the stock is approaching oversold territory. MACD at 0.86 indicates mild bullish crossover, but momentum remains weak. Bollinger Bands show price near the lower band, suggesting consolidation with downside bias. Current volume (70K) is below the 1-week average (120K), reflecting reduced participation.
🔑 Momentum Signals: Short-term momentum is neutral-to-bearish with immediate support at ₹1,380 and major support at ₹1,350. Resistance lies at ₹1,445–₹1,460 (DMA50 zone). Optimal entry zone: ₹1,380–₹1,400 for risk-managed traders. Exit zone: ₹1,445–₹1,460 if recovery occurs. Trend status: Consolidating with bearish bias.
Positive ✅
- ROCE (17.6%) and ROE (12.6%) indicate healthy capital efficiency.
- Low debt-to-equity (0.11) ensures financial stability.
- Quarterly PAT growth (₹305 Cr vs ₹262 Cr) shows earnings momentum.
- EPS of ₹30.3 reflects consistent profitability base.
Limitation ⚠️
- Stock trading below 50 DMA, showing weak short-term technical strength.
- High P/E (36.8) compared to industry PE (29.0) suggests overvaluation.
- PEG ratio (-50.4) highlights poor growth-adjusted valuation.
- Volume trend weaker than average, showing lack of strong buying support.
Company Negative News 📉
- Stock has declined from 52-week high of ₹1,595 to ₹1,404, eroding sentiment.
- Weak RSI and low volume indicate lack of momentum for breakout.
Company Positive News 📊
- FII holding increased (+0.20%), showing foreign investor confidence.
- DII holding also increased (+0.54%), reflecting domestic institutional support.
- Quarterly profit variation of 24.8% indicates strong operational performance.
Industry 🌐
- Industry PE at 29.0 is lower than IPCALAB’s PE of 36.8, suggesting sector peers may be more attractively valued.
- Pharma sector outlook remains positive with demand-driven growth opportunities.
Conclusion 📝
IPCALAB is currently consolidating with a bearish bias, trading below its 50 DMA but holding above the 200 DMA. Fundamentals remain strong with profit growth and low debt, but valuation concerns and weak technicals suggest caution. Risk-tolerant traders may consider entries near ₹1,380–₹1,400 with exits around ₹1,445–₹1,460, while long-term investors should wait for confirmation of trend reversal above the 50 DMA.
Would you like me to also prepare a peer benchmarking overlay comparing IPCALAB with pharma peers like Sun Pharma, Cipla, and Dr. Reddy’s to highlight relative strength and valuation?