Ipca Laboratories (BSE:524494) - Share price, News & Analysis

524494 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	3/6
Past Performance	2/6
Financial Health	6/6
Dividends	4/6

524494 Stock Overview

Ipca Laboratories Limited manufactures and markets pharmaceutical formulations and active pharmaceutical ingredients (APIs) for various therapeutic segments in India.

Rewards

Earnings are forecast to grow 18.25% per year

Risk Analysis

Unstable dividend track record

Significant insider selling over the past 3 months

Ipca Laboratories Competitors

Cipla

NSEI:CIPLA

₹789.4b

Dr. Reddy's Laboratories

BSE:500124

₹704.7b

Abbott India

BSE:500488

₹381.9b

Alkem Laboratories

BSE:539523

₹358.9b

Price History & Performance

Summary of all time highs, changes and price drops for Ipca Laboratories
Historical stock prices
Current Share Price	₹989.00
52 Week High	₹1,383.55
52 Week Low	₹917.00
Beta	0.12
1 Month Change	-4.11%
3 Month Change	1.01%
1 Year Change	-11.16%
3 Year Change	112.06%
5 Year Change	292.85%
Change since IPO	1,176.13%

Shareholder Returns

	524494	IN Pharmaceuticals	IN Market
7D	1.4%	3.5%	3.4%
1Y	-11.2%	-9.6%	9.6%

Return vs Industry: 524494 underperformed the Indian Pharmaceuticals industry which returned -9.6% over the past year.

Return vs Market: 524494 underperformed the Indian Market which returned 9.6% over the past year.

Price Volatility

Is 524494's price volatile compared to industry and market?
524494 volatility
524494 Average Weekly Movement	4.1%
Pharmaceuticals Industry Average Movement	7.0%
Market Average Movement	7.3%
10% most volatile stocks in IN Market	10.0%
10% least volatile stocks in IN Market	4.8%

Stable Share Price: 524494 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 524494's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1949	14,574	Premchand Godha	https://www.ipca.com

Ipca Laboratories Limited manufactures and markets pharmaceutical formulations and active pharmaceutical ingredients (APIs) for various therapeutic segments in India. The company offers APIs in therapeutic areas of anti-hypertensive, anti-malarial, diuretic, DMARD, and anthelmintic. It also provides generic and branded formulations in the therapeutic segments, including cardiology, gastroenterology, dermatology, rheumatology, urology, ophthalmology, infectious disease, immunosuppressant, probiotics, respiratory, allergy, nutraceuticals, anti-neoplastic, malarial, neurology, psychiatry, orthopedics, helminthics, fever, hematology, hepatoprotective, diabetology, anti-epileptic, emollients/protectives, NSAIDs, rheumatology, anti-arthritic, and neuropathic pain, as well as products in various dosage forms comprising oral solids, powders for suspension, and liquid and dry injections.

Ipca Laboratories Fundamentals Summary

How do Ipca Laboratories's earnings and revenue compare to its market cap?
524494 fundamental statistics
Market Cap	₹250.91b
Earnings (TTM)	₹9.15b
Revenue (TTM)	₹56.56b

27.4x

P/E Ratio

4.4x

P/S Ratio

Is 524494 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
524494 income statement (TTM)
Revenue	₹56.56b
Cost of Revenue	₹20.95b
Gross Profit	₹35.61b
Other Expenses	₹26.45b
Earnings	₹9.15b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

May 25, 2022

Earnings per share (EPS)	36.07
Gross Margin	62.95%
Net Profit Margin	16.18%
Debt/Equity Ratio	5.7%

How did 524494 perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

11%

Payout Ratio

Valuation

Is Ipca Laboratories undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

27.42x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: 524494 (₹989) is trading above our estimate of fair value (₹642.83)

Significantly Below Fair Value: 524494 is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: 524494 is poor value based on its PE Ratio (27.4x) compared to the Indian Pharmaceuticals industry average (21.9x).

PE vs Market: 524494 is poor value based on its PE Ratio (27.4x) compared to the Indian market (20.5x).

Price to Earnings Growth Ratio

PEG Ratio: 524494 is poor value based on its PEG Ratio (1.5x)

Price to Book Ratio

PB vs Industry: 524494 is overvalued based on its PB Ratio (4.8x) compared to the IN Pharmaceuticals industry average (2.6x).

Future Growth

How is Ipca Laboratories forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 524494's forecast earnings growth (18.2% per year) is above the savings rate (6.7%).

Earnings vs Market: 524494's earnings (18.2% per year) are forecast to grow faster than the Indian market (17.5% per year).

High Growth Earnings: 524494's earnings are forecast to grow, but not significantly.

Revenue vs Market: 524494's revenue (12.1% per year) is forecast to grow faster than the Indian market (11.8% per year).

High Growth Revenue: 524494's revenue (12.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 524494's Return on Equity is forecast to be low in 3 years time (18.8%).

Past Performance

How has Ipca Laboratories performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

29.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 524494 has high quality earnings.

Growing Profit Margin: 524494's current net profit margins (16.2%) are lower than last year (19.8%).

Past Earnings Growth Analysis

Earnings Trend: 524494's earnings have grown significantly by 29.2% per year over the past 5 years.

Accelerating Growth: 524494's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 524494 had negative earnings growth (-14%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (12.4%).

Return on Equity

High ROE: 524494's Return on Equity (17.2%) is considered low.

Financial Health

How is Ipca Laboratories's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 524494's short term assets (₹39.6B) exceed its short term liabilities (₹12.9B).

Long Term Liabilities: 524494's short term assets (₹39.6B) exceed its long term liabilities (₹2.1B).

Debt to Equity History and Analysis

Debt Level: 524494 has more cash than its total debt.

Reducing Debt: 524494's debt to equity ratio has reduced from 31.3% to 5.7% over the past 5 years.

Debt Coverage: 524494's debt is well covered by operating cash flow (278.8%).

Interest Coverage: 524494 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Ipca Laboratories's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.40%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 524494's dividend (0.4%) is higher than the bottom 25% of dividend payers in the Indian market (0.35%).

High Dividend: 524494's dividend (0.4%) is low compared to the top 25% of dividend payers in the Indian market (1.59%).

Stability and Growth of Payments

Stable Dividend: 524494's dividend payments have been volatile in the past 10 years.

Growing Dividend: 524494's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (11.1%), 524494's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (27.2%), 524494's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

11.5yrs

Average board tenure

CEO

Premchand Godha (75 yo)

no data

Tenure

₹107,917,193

Compensation

Mr. Premchand Godha, CA, B.Com., A.C.A., has been the Managing Director of Ipca Laboratories Limited since 1983 and serves as its Chief Executive Officer. Mr. Godha was in professional practice for five ye...

CEO Compensation Analysis

Compensation vs Market: Premchand's total compensation ($USD1.39M) is above average for companies of similar size in the Indian market ($USD610.51K).

Compensation vs Earnings: Premchand's compensation has been consistent with company performance over the past year.

Board Members

Experienced Board: 524494's board of directors are seasoned and experienced ( 11.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: 524494 insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2021/12/31
Annual Earnings	2021/03/31