Ipca Laboratories Ltd logo

Ipca Laboratories Ltd

IPCALAB NSE

Ipca Laboratories is engaged in the manufacturing and marketing of pharmaceuticals.(Source : 201903 Annual Report Page No: 68)

AI Verdict: BUY Confidence: 7%

Ipca Laboratories demonstrates strong profit growth (42% TTM, 38% 3-year CAGR) with improving ROE trajectory from 13% to 16%, supported by overwhelming analyst consensus (86% Buy). However, valuation at 33.1x PE and 4.86x PB warrants caution, making this a conviction buy only on dips.

Key Fundamentals

MidcapPharmaceuticalsHealthcare
Market Cap
₹41,557 Cr
Volatility
Moderate
P/E Ratio
35.98
EBITDA
₹1,892 Cr
Return on Equity
6.85%
Debt to Equity
0.21
Book Value
₹317.84
EPS
₹23.14
52W High
₹1,678.3
52W Low
₹1,251.6

Technical Indicators

Key Insights

Strengths

1
  • Company has reduced debt.

Weaknesses

2
  • Stock is trading at 5.10 times its book value
  • Company has a low return on equity of 13.1% over last 3 years.

Growth Rate

Revenue Growth
6.80% ↗
Net Income Growth
46.63% ↗
Cash Flow Change
39.87% ↗
ROE
37.08% ↗
ROCE
15.60% ↗
EBITDA Margin (Avg.)
-4.32% ↗

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
BUY
Risk medium

Ipca Laboratories demonstrates strong profit growth (42% TTM, 38% 3-year CAGR) with improving ROE trajectory from 13% to 16%, supported by overwhelming analyst consensus (86% Buy). However, valuation at 33.1x PE and 4.86x PB warrants caution, making this a conviction buy only on dips.

Bull Case 8
  • Compounded profit growth of 42% TTM signals strong operational leverage and margin expansion
  • 86% analyst Buy consensus (12 out of 14 analysts) with zero Sell ratings reflects high institutional confidence
  • ROE improving from 13% (3-year average) to 16% (last year) indicates better capital efficiency
  • Company has reduced debt, strengthening balance sheet and lowering financial risk
  • 10-year compounded sales CAGR of 13% demonstrates consistent top-line growth across cycles
  • 3-year compounded profit CAGR of 38% far outpaces 3-year sales CAGR of 16%, showing margin expansion
  • Stock CAGR of 29% over 3 years reflects sustained market re-rating and investor interest
  • Market cap of Rs 40,116 Cr provides adequate liquidity and institutional ownership eligibility
Bear Case 8
  • PE ratio of 33.1x is expensive relative to pharma sector median of ~25x, limiting upside potential
  • Price-to-book of 4.86x (nearly 5x book value) leaves little margin of safety for investors
  • 3-year average ROE of only 13.1% is below the 15% threshold typically expected at this valuation multiple
  • 5-year compounded profit CAGR of just 1% reveals historically inconsistent earnings delivery
  • Dividend yield of only 0.26% offers negligible income support during potential drawdowns
  • TTM sales growth of only 8% shows deceleration from 3-year CAGR of 16%, raising sustainability concerns
  • 5-year stock CAGR of 10% versus 10-year CAGR of 21% indicates a prolonged period of underperformance between 2019-2022
  • 1-year stock return of 17% already prices in near-term positives, limiting fresh entry upside

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 2
  • Five-session losing streak Jun 15

    Stock fell 0.47% to ₹1,575.6 on fifth consecutive down day, underperforming both NIFTY (-15.63% vs -4.2% YoY) and Nifty Pharma (-15.63% vs -9.97% YoY).

  • Below-average trading volumes Jun 15

    Daily volume of 77,999 shares was significantly below the one-month average of 3.04 lakh shares, suggesting weak buying interest despite broader market rally of 1.17%.

Positives 3
  • FY26 net profit surges 55% Jun 02

    Consolidated net profit jumped 55% to ₹1,141.12 crore in FY26 with revenue up 8% to ₹9,646.33 crore and EBITDA margins improving to 20.72%.

  • Strong FY27 growth guidance Jun 02

    Company projects 12-13% consolidated revenue growth for FY27, EBITDA margins of 22-22.3%, domestic branded growth of ~12%, and Unichem US growth of ~10%.

  • Global biologics licensing deal Jun 12

    Partnered with Bhami's Research Laboratory to license a subcutaneous biologics delivery platform targeting oncology and inflammatory diseases, expanding pipeline beyond generics.

Neutral 3
  • ₹90.35 crore institutional block trade Jun 08

    Block trade of ~5.51 lakh shares executed on NSE at ₹1,638.30 per share totaling ₹90.35 crore, indicating institutional portfolio rebalancing.

  • Trading window closed for Q1FY27 Jun 22

    Ipca closed its trading window from July 1, 2026, until 48 hours after Q1FY27 results declaration, a routine compliance measure.

  • Q4FY26 earnings call held Jun 01

    Conference call to discuss Q4FY26 earnings and business updates was held on June 1, 2026, at 15:30 hrs IST.

TL;DR: Ipca Laboratories delivered strong FY26 results with 55% profit growth and guided for 12-13% revenue expansion in FY27 with margin improvement. However, the stock has significantly underperformed both broader indices and the pharma sector over the past year, declining 15.63%. The biologics licensing deal adds long-term optionality, but near-term price action remains weak with five consecutive sessions of decline and low volumes. The disconnect between improving fundamentals and deteriorating stock performance suggests sentiment may take time to catch up with earnings delivery.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
1,512
1,585
2,034
2,053
2,033
2,093
2,355
2,245
2,247
2,309
2,556
2,392
2,388
Expenses
1,331
1,278
1,673
1,722
1,711
1,700
1,913
1,782
1,818
1,892
2,012
1,859
1,905
Operating Profit
181
308
361
331
322
393
441
463
429
416
545
533
484
OPM %
12%
19%
18%
16%
16%
19%
19%
21%
19%
18%
21%
22%
20%
Other Income
36
45
-1
91
-118
21
26
20
-179
33
-30
38
48
Interest
18
31
44
33
29
24
23
17
22
19
20
18
20
Depreciation
70
69
90
100
98
99
100
98
100
100
103
108
107
PBT
129
252
225
289
77
290
345
368
128
331
392
446
404
Tax %
37%
34%
39%
23%
96%
31%
29%
25%
49%
29%
28%
18%
24%
Net Profit
78
164
136
221
1
199
246
276
64
233
281
364
307
EPS in Rs
3.02
6.42
5.72
7.09
2.35
7.58
9.05
9.78
2.67
9.19
11.14
12.86
11.79
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
3,144
2,867
3,156
3,258
3,746
4,619
5,395
5,797
6,204
7,662
8,897
9,646
Expenses
2,604
2,573
2,705
2,803
3,051
3,715
3,843
4,472
5,272
6,338
7,166
7,668
Operating Profit
541
294
451
455
695
904
1,552
1,325
932
1,324
1,731
1,979
OPM %
17%
10%
14%
14%
19%
20%
29%
23%
15%
17%
19%
21%
Other Income
32
21
11
41
56
65
59
54
123
17
-114
88
Interest
32
35
27
28
22
20
12
11
48
141
88
76
Depreciation
180
163
173
178
182
210
209
232
262
357
398
418
PBT
361
117
262
291
546
739
1,389
1,136
745
843
1,131
1,573
Tax %
28%
18%
26%
18%
19%
18%
17%
20%
34%
37%
30%
24%
Net Profit
254
93
195
239
442
604
1,141
890
479
523
785
1,184
EPS in Rs
10.07
3.69
7.71
9.49
17.6
23.99
44.94
34.85
18.58
21.57
29.08
44.98
Div. Payout %
5%
0%
6%
5%
9%
10%
9%
11%
22%
19%
14%
13%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
25
25
25
25
25
25
25
25
25
25
25
25
Reserves
2,183
2,234
2,430
2,663
3,097
3,602
4,676
5,467
5,817
6,307
6,923
8,038
Borrowings
935
867
716
628
465
501
265
807
1,481
1,438
1,363
809
Other Liabilities
669
765
788
799
961
1,130
1,099
1,338
1,300
3,326
3,432
3,498
Total Liabilities
3,812
3,892
3,960
4,116
4,549
5,258
6,066
7,637
8,623
11,097
11,744
12,370
Fixed Assets
1,800
2,014
1,983
1,953
1,940
2,059
2,072
2,418
2,751
4,554
4,267
4,638
CWIP
267
129
95
73
66
133
235
306
140
343
622
762
Investments
16
26
136
87
120
310
505
989
626
862
980
844
Other Assets
1,729
1,723
1,746
2,003
2,422
2,756
3,254
3,924
5,105
5,339
5,875
6,127
Total Assets
3,812
3,892
3,960
4,116
4,549
5,258
6,066
7,637
8,623
11,097
11,744
12,370
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
468
709
282
341
501
570
1,090
856
806
945
1,321
1,142
Investing
-689
-218
-149
-135
-165
-509
-521
-851
-725
-1,215
-870
-247
Financing
251
-462
-159
-130
-183
-137
-306
427
507
-553
-283
-754
Net Cash Flow
29
29
-26
75
153
-76
264
432
588
-823
169
142
Free Cash Flow
-207
463
147
206
322
277
731
380
347
543
551
825
CFO/OP
100
251
74
88
88
80
86
80
110
94
97
79
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
41
57
58
67
66
71
55
57
58
80
77
76
Inventory Days
293
289
290
286
316
294
337
337
276
350
336
353
Days Payable
97
145
130
137
154
135
140
101
83
110
111
122
Cash Conversion Cycle
237
200
218
216
228
229
251
293
251
321
302
308
Working Capital Days
68
61
74
80
88
88
103
102
71
111
101
133
ROCE %
14%
5%
9%
10%
16%
19%
31%
20%
11%
13%
15%
17%

Shareholding Pattern

As of Mar 2026
Promoters 44.72%
DIIs 37.45%
FIIs 10.63%
Public 5.79%
Others 1.41%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
46.29%
46.29%
46.29%
46.29%
46.29%
46.29%
46.29%
46.29%
46.29%
46.29%
46.29%
46.29%
46.30%
46.30%
46.30%
44.72%
44.72%
44.72%
44.72%
44.72%
44.72%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.02%
0.02%
0.02%
0.00%
9.86%
0.00%
10.51%
10.85%
10.83%
11.07%
10.76%
10.67%
10.43%
10.63%
10.63%
DIIs
24.49%
24.86%
25.00%
29.73%
32.41%
33.31%
33.29%
34.03%
33.55%
35.19%
35.05%
33.79%
34.37%
33.78%
34.23%
35.68%
36.06%
36.20%
36.77%
37.32%
37.45%
Government
0.28%
0.22%
0.22%
0.24%
0.24%
0.24%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
8.74%
8.25%
7.61%
7.75%
7.79%
7.50%
7.44%
7.41%
7.26%
6.98%
7.14%
7.12%
7.13%
7.27%
6.93%
6.88%
6.81%
6.82%
6.55%
5.88%
5.79%
Others
20.20%
20.39%
20.89%
15.99%
13.27%
12.66%
12.97%
12.26%
12.89%
11.54%
1.67%
12.80%
1.69%
1.79%
1.71%
1.65%
1.65%
1.59%
1.53%
1.44%
1.41%
No. of Shareholders
1,00,626
1,05,428
95,239
1,06,779
1,15,335
1,10,818
1,11,043
1,08,177
1,10,296
99,889
95,930
82,809
81,165
84,753
82,975
90,189
88,306
85,582
82,870
77,673
82,184

Documents

Frequently Asked Questions about Ipca Laboratories Ltd

What does Ipca Laboratories Ltd do?
Ipca Laboratories is engaged in the manufacturing and marketing of pharmaceuticals.(Source : 201903 Annual Report Page No: 68)
Where is Ipca Laboratories Ltd (IPCALAB) listed?
Ipca Laboratories Ltd is listed on the Indian stock exchanges. It is listed on NSE: IPCALAB and BSE: 524494. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Ipca Laboratories Ltd belong to?
Ipca Laboratories Ltd operates in the Healthcare sector within the Pharmaceuticals & Biotechnology industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Ipca Laboratories Ltd?
Ipca Laboratories Ltd has a market capitalisation of approximately ₹41556.75 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Ipca Laboratories Ltd?
The Price-to-Earnings (PE) ratio of Ipca Laboratories Ltd is 35.98. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Ipca Laboratories Ltd?
Over the past 52 weeks, Ipca Laboratories Ltd has traded between a low of ₹1,251.6 and a high of ₹1,678.3. This range helps investors understand the stock's price volatility and recent trading levels.
Does Ipca Laboratories Ltd pay dividends?
Yes, Ipca Laboratories Ltd has a dividend yield of 0.25%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Ipca Laboratories Ltd?
Ipca Laboratories Ltd has a Return on Equity (ROE) of 6.85%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Ipca Laboratories Ltd on Tapetide?
On Tapetide, you can view Ipca Laboratories Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Ipca Laboratories is engaged in the manufacturing and marketing of pharmaceuticals.(Source : 201903 Annual Report Page No: 68)

Website ipca.com
CEO Mr. Premchand Godha A.C. A., B. Com., CA
Employees 16,778
Listed 1995-02-01
Face Value ₹ 1
Issued Size 25,37,04,218

Explore More

More in Healthcare → FII DII Data Stock Screener Nifty 50 Heatmap F&O Ban List