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IPCA

Ipca Laboratories NSEI:IPCALAB Stock Report

Last Price

₹896.90

Market Cap

₹227.4b

7D

0.9%

1Y

-11.5%

Updated

29 Jun, 2022

Data

Company Financials +
IPCALAB fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance2/6
Financial Health6/6
Dividends4/6

IPCALAB Stock Overview

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

Ipca Laboratories Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ipca Laboratories
Historical stock prices
Current Share Price₹896.90
52 Week High₹1,383.10
52 Week Low₹831.05
Beta0.12
1 Month Change-0.38%
3 Month Change-15.84%
1 Year Change-11.48%
3 Year Change87.00%
5 Year Change273.71%
Change since IPO2,260.26%

Recent News & Updates

Jun 22
Is Ipca Laboratories (NSE:IPCALAB) A Risky Investment?

Is Ipca Laboratories (NSE:IPCALAB) A Risky Investment?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

May 28
Calculating The Fair Value Of Ipca Laboratories Limited (NSE:IPCALAB)

Calculating The Fair Value Of Ipca Laboratories Limited (NSE:IPCALAB)

In this article we are going to estimate the intrinsic value of Ipca Laboratories Limited ( NSE:IPCALAB ) by taking the...

Shareholder Returns

IPCALABIN PharmaceuticalsIN Market
7D0.9%2.6%3.0%
1Y-11.5%-16.2%0.3%

Return vs Industry: IPCALAB exceeded the Indian Pharmaceuticals industry which returned -16.3% over the past year.

Return vs Market: IPCALAB underperformed the Indian Market which returned 0.6% over the past year.

Price Volatility

Is IPCALAB's price volatile compared to industry and market?
IPCALAB volatility
IPCALAB Average Weekly Movement2.9%
Pharmaceuticals Industry Average Movement6.8%
Market Average Movement7.0%
10% most volatile stocks in IN Market9.9%
10% least volatile stocks in IN Market4.5%

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

Volatility Over Time: IPCALAB's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194914,574Premchand Godhahttps://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?
IPCALAB fundamental statistics
Market Cap₹227.41b
Earnings (TTM)₹8.84b
Revenue (TTM)₹58.30b

25.7x

P/E Ratio

3.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IPCALAB income statement (TTM)
Revenue₹58.30b
Cost of Revenue₹20.15b
Gross Profit₹38.15b
Other Expenses₹29.31b
Earnings₹8.84b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)34.85
Gross Margin65.44%
Net Profit Margin15.16%
Debt/Equity Ratio14.2%

How did IPCALAB perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

11%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is IPCALAB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IPCALAB?

Other financial metrics that can be useful for relative valuation.

IPCALAB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.8x
Enterprise Value/EBITDA17x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

How does IPCALAB's PE Ratio compare to its peers?

IPCALAB PE Ratio vs Peers
The above table shows the PE ratio for IPCALAB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average32.6x
500680 Pfizer
30.6xn/a₹187.2b
AJANTPHARM Ajanta Pharma
22x9.5%₹156.6b
500660 GlaxoSmithKline Pharmaceuticals
66.6x29.6%₹253.8b
AUROPHARMA Aurobindo Pharma
11.4x10.2%₹301.4b
IPCALAB Ipca Laboratories
25.7x14.2%₹227.4b

Price-To-Earnings vs Peers: IPCALAB is good value based on its Price-To-Earnings Ratio (25.7x) compared to the peer average (32.6x).


Price to Earnings Ratio vs Industry

How does IPCALAB's PE Ratio compare vs other companies in the IN Pharmaceuticals Industry?

Price-To-Earnings vs Industry: IPCALAB is expensive based on its Price-To-Earnings Ratio (25.7x) compared to the Indian Pharmaceuticals industry average (21.1x)


Price to Earnings Ratio vs Fair Ratio

What is IPCALAB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IPCALAB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.7x
Fair PE Ratio25.6x

Price-To-Earnings vs Fair Ratio: IPCALAB is expensive based on its Price-To-Earnings Ratio (25.7x) compared to the estimated Fair Price-To-Earnings Ratio (25.6x).


Share Price vs Fair Value

What is the Fair Price of IPCALAB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IPCALAB (₹896.9) is trading below our estimate of fair value (₹1132.83)

Significantly Below Fair Value: IPCALAB is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: IPCALAB is poor value based on its PEG Ratio (1.8x)


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Future Growth

How is Ipca Laboratories forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


14.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IPCALAB's forecast earnings growth (14.2% per year) is above the savings rate (6.7%).

Earnings vs Market: IPCALAB's earnings (14.2% per year) are forecast to grow slower than the Indian market (17.3% per year).

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

Revenue vs Market: IPCALAB's revenue (10.5% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: IPCALAB's revenue (10.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IPCALAB's Return on Equity is forecast to be low in 3 years time (16.8%).


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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


26.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IPCALAB has high quality earnings.

Growing Profit Margin: IPCALAB's current net profit margins (15.2%) are lower than last year (21%).


Past Earnings Growth Analysis

Earnings Trend: IPCALAB's earnings have grown significantly by 26.2% per year over the past 5 years.

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

Earnings vs Industry: IPCALAB had negative earnings growth (-22.5%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (9%).


Return on Equity

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


Discover strong past performing companies

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: IPCALAB's short term assets (₹44.6B) exceed its short term liabilities (₹14.7B).

Long Term Liabilities: IPCALAB's short term assets (₹44.6B) exceed its long term liabilities (₹6.0B).


Debt to Equity History and Analysis

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

Reducing Debt: IPCALAB's debt to equity ratio has reduced from 29.1% to 14.2% over the past 5 years.

Debt Coverage: IPCALAB's debt is well covered by operating cash flow (108.2%).

Interest Coverage: IPCALAB's interest payments on its debt are well covered by EBIT (140x coverage).


Balance Sheet


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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


0.45%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: IPCALAB's dividend (0.45%) is higher than the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: IPCALAB's dividend (0.45%) is low compared to the top 25% of dividend payers in the Indian market (1.85%).


Stability and Growth of Payments

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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (11.5%), IPCALAB's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (26.9%), IPCALAB'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?

11.6yrs

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 ($USD1.37M) is above average for companies of similar size in the Indian market ($USD641.14K).

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


Board Members

Experienced Board: IPCALAB's board of directors are seasoned and experienced ( 11.6 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Ipca Laboratories Limited
  • Ticker: IPCALAB
  • Exchange: NSEI
  • Founded: 1949
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: ₹227.408b
  • Shares outstanding: 253.70m
  • Website: https://www.ipca.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.