NSEI:IPCALAB

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Ipca Laboratories's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

IPCALAB

2.1%

IN Pharmaceuticals

1.6%

IN Market


1 Year Return

28.7%

IPCALAB

-21.1%

IN Pharmaceuticals

0.8%

IN Market

Return vs Industry: IPCALAB exceeded the Indian Pharmaceuticals industry which returned -21.1% over the past year.

Return vs Market: IPCALAB exceeded the Indian Market which returned 0.8% over the past year.


Shareholder returns

IPCALABIndustryMarket
7 Day0.8%2.1%1.6%
30 Day-6.4%-6.9%1.5%
90 Day-6.1%-7.2%-3.3%
1 Year29.1%28.7%-20.4%-21.1%2.7%0.8%
3 Year43.3%42.4%-26.3%-27.8%22.0%16.0%
5 Year29.9%28.9%-11.1%-13.8%42.3%29.3%

Price Volatility Vs. Market

How volatile is Ipca Laboratories's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

22.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: IPCALAB (₹882.5) is trading above our estimate of fair value (₹233.07)

Significantly Undervalued: IPCALAB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IPCALAB is poor value based on its PE Ratio (22x) compared to the Pharmaceuticals industry average (15.4x).

PE vs Market: IPCALAB is poor value based on its PE Ratio (22x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: IPCALAB is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: IPCALAB is overvalued based on its PB Ratio (3.6x) compared to the IN Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is Ipca Laboratories forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IPCALAB's forecast earnings growth (23.4% per year) is above the savings rate (7.6%).

Earnings vs Market: IPCALAB's earnings (23.4% per year) are forecast to grow faster than the Indian market (18.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IPCALAB's revenue (12.2% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: IPCALAB's revenue (12.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: IPCALAB's Return on Equity is forecast to be low in 3 years time (18%).


Next Steps

Past Performance

How has Ipca Laboratories performed over the past 5 years?

24.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IPCALAB's earnings have grown significantly by 24.8% per year over the past 5 years.

Accelerating Growth: IPCALAB's earnings growth over the past year (74.1%) exceeds its 5-year average (24.8% per year).

Earnings vs Industry: IPCALAB earnings growth over the past year (74.1%) exceeded the Pharmaceuticals industry 16.4%.


Return on Equity

High ROE: IPCALAB's Return on Equity (16%) is considered low.


Return on Assets

ROA vs Industry: IPCALAB has a higher Return on Assets than the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: IPCALAB has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Ipca Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: IPCALAB's short term assets (₹23.8B) exceeds its short term liabilities (₹11.0B)

Long Term Liabilities: IPCALAB's short term assets (23.8B) exceeds its long term liabilities (3.2B)


Debt to Equity History and Analysis

Debt Level: IPCALAB's debt to equity ratio (14.8%) is considered satisfactory

Reducing Debt: IPCALAB's debt to equity ratio has reduced from 33.9% to 14.8% over the past 5 years.

Debt Coverage: IPCALAB's debt is well covered by operating cash flow (105.9%).

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


Balance Sheet

Inventory Level: IPCALAB has a high level of physical assets or inventory.

Debt Coverage by Assets: IPCALAB's debt is covered by short term assets (assets are 5.113990x debt).


Next Steps

Dividend

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

0.34%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%0.6%markettop25%2.5%industryaverage0.9%forecastin3Years0.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: IPCALAB's dividend (0.34%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: IPCALAB's dividend (0.34%) is low compared to the top 25% of dividend payers in the Indian market (2.49%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.5%), IPCALAB's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IPCALAB's dividends in 3 years are forecast to be thoroughly covered by earnings (5.7% payout ratio).


Next Steps

Management

What is the CEO of Ipca Laboratories's salary, the management and board of directors tenure and is there insider trading?

7.8yrs

Average board tenure


CEO

Premchand Godha (73yo)

0yrs

Tenure

₹108,630,551

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: Insufficient data to establish whether Premchand's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Premchand's compensation has increased by more than 20% in the past year.


Board Age and Tenure

7.8yrs

Average Tenure

67yo

Average Age

Experienced Board: IPCALAB's board of directors are considered experienced (7.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell₹8,961,16728 Jun 19
A. P. Sarma
EntityIndividual
Shares9,678
Max Price₹925.93

Ownership Breakdown


Management Team

  • Premchand Godha (73yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: ₹108.63m
  • Ajit Kumar Jain (64yo)

    CFO, Joint MD & Executive Director

    • Tenure: 25.2yrs
    • Compensation: ₹49.91m
  • Harish Kamath (60yo)

    Compliance Officer

    • Tenure: 0yrs
    • Compensation: ₹12.72m
  • Pranay Godha (47yo)

    President of APIs & Generics and Executive Director

    • Tenure: 0yrs
    • Compensation: ₹29.20m
  • Prashant Godha (44yo)

    Executive Director

    • Tenure: 8.2yrs
    • Compensation: ₹27.69m
  • E. Babu (56yo)

    President of Global Business

    • Tenure: 0yrs
    • Compensation: ₹7.57m
  • Sanjay Sinha (60yo)

    President of Operations - Formulations

    • Tenure: 0yrs
    • Compensation: ₹8.74m
  • Sameer Tamhane (52yo)

    Senior Vice President of Human Resources

    • Tenure: 0yrs
    • Compensation: ₹6.52m
  • Vishnu Kushwaha (51yo)

    Vice President of Technical

    • Tenure: 0yrs
  • Pawan Kothari (54yo)

    Vice President of Operations

    • Tenure: 0yrs
    • Compensation: ₹6.05m

Board Members

  • Premchand Godha (73yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: ₹108.63m
  • Anand Kusre (70yo)

    Independent & Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: ₹650.00k
  • Ajit Kumar Jain (64yo)

    CFO, Joint MD & Executive Director

    • Tenure: 25.2yrs
    • Compensation: ₹49.91m
  • Pranay Godha (47yo)

    President of APIs & Generics and Executive Director

    • Tenure: 0yrs
    • Compensation: ₹29.20m
  • Prashant Godha (44yo)

    Executive Director

    • Tenure: 8.2yrs
    • Compensation: ₹27.69m
  • Dev Yadava (72yo)

    Independent & Non-Executive Director

    • Tenure: 7.5yrs
    • Compensation: ₹750.00k
  • Manisha Premnath (45yo)

    Independent & Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: ₹325.00k
  • Kamal Seth (74yo)

    Independent Director

    • Tenure: 0.6yrs
    • Compensation: ₹100.00k

Company Information

Ipca Laboratories Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ipca Laboratories Limited
  • Ticker: IPCALAB
  • Exchange: NSEI
  • Founded: 1949
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹112.449b
  • Shares outstanding: 126.33m
  • Website: https://www.ipca.com

Location

  • Ipca Laboratories Limited
  • 142 AB, Kandivli Industrial Estate
  • Kandivli (West)
  • Mumbai
  • Maharashtra
  • 400067
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
524494BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 1995
IPCALABNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 1995

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:47
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.