Ipca Laboratories Limited

NSEI:IPCALAB Stock Report

Market Cap: ₹397.5b

Ipca Laboratories Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

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 (₹1566.7) is trading above our estimate of fair value (₹642.29)

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

Key Valuation Metric

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

Key metric: As IPCALAB is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for IPCALAB. This is calculated by dividing IPCALAB's market cap by their current earnings.
What is IPCALAB's PE Ratio?
PE Ratio60.1x
Earnings₹6.61b
Market Cap₹397.48b

Price to Earnings Ratio vs Peers

How does IPCALAB's PE Ratio compare to its 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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average46.7x
AJANTPHARM Ajanta Pharma
41.2x16.4%₹360.8b
GLAND Gland Pharma
42.2x25.8%₹292.2b
500660 GlaxoSmithKline Pharmaceuticals
60.5x16.8%₹408.6b
506943 J. B. Chemicals & Pharmaceuticals
42.7x19.4%₹260.8b
IPCALAB Ipca Laboratories
60.1x30.5%₹397.5b

Price-To-Earnings vs Peers: IPCALAB is expensive based on its Price-To-Earnings Ratio (60.1x) compared to the peer average (46.7x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
INDSWFTLAB Ind-Swift Laboratories
1.6xn/aUS$72.79m
524652 Ind-Swift
2xn/aUS$13.15m
No more companies available in this PE range
IPCALAB 60.1xIndustry Avg. 32.7xNo. of Companies18PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IPCALAB is expensive based on its Price-To-Earnings Ratio (60.1x) compared to the Indian Pharmaceuticals industry average (32.7x).

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 Ratio60.1x
Fair PE Ratio52x

Price-To-Earnings vs Fair Ratio: IPCALAB is expensive based on its Price-To-Earnings Ratio (60.1x) compared to the estimated Fair Price-To-Earnings Ratio (52x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst IPCALAB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,566.70
₹1,478.71
-5.6%
20.6%₹1,950.00₹900.00n/a17
Nov ’25₹1,607.10
₹1,425.47
-11.3%
18.9%₹1,950.00₹900.00n/a17
Oct ’25₹1,491.40
₹1,354.89
-9.2%
16.1%₹1,750.00₹900.00n/a18
Sep ’25₹1,384.65
₹1,319.78
-4.7%
14.7%₹1,600.00₹900.00n/a18
Aug ’25₹1,304.80
₹1,215.50
-6.8%
14.4%₹1,438.00₹900.00n/a18
Jul ’25₹1,135.25
₹1,196.94
+5.4%
16.9%₹1,438.00₹687.00n/a18
Jun ’25₹1,152.15
₹1,206.11
+4.7%
17.6%₹1,505.00₹687.00n/a18
May ’25₹1,339.50
₹1,163.11
-13.2%
18.5%₹1,505.00₹687.00n/a18
Apr ’25₹1,241.05
₹1,151.11
-7.2%
14.9%₹1,350.00₹850.00n/a18
Mar ’25₹1,193.05
₹1,139.44
-4.5%
14.5%₹1,350.00₹850.00n/a18
Feb ’25₹1,114.45
₹1,005.61
-9.8%
16.0%₹1,200.00₹670.00n/a18
Jan ’25₹1,119.35
₹992.83
-11.3%
15.0%₹1,200.00₹670.00n/a18
Dec ’24₹1,149.70
₹987.00
-14.2%
15.3%₹1,200.00₹670.00n/a18
Nov ’24₹978.75
₹899.72
-8.1%
13.9%₹1,200.00₹670.00₹1,607.1018
Oct ’24₹935.65
₹858.89
-8.2%
10.0%₹1,029.00₹670.00₹1,491.4019
Sep ’24₹866.80
₹859.20
-0.9%
9.8%₹1,029.00₹670.00₹1,384.6520
Aug ’24₹902.40
₹826.47
-8.4%
10.3%₹1,010.00₹670.00₹1,304.8019
Jul ’24₹742.85
₹831.56
+11.9%
10.5%₹1,010.00₹670.00₹1,135.2518
Jun ’24₹705.50
₹848.80
+20.3%
12.6%₹1,096.00₹670.00₹1,152.1520
May ’24₹710.15
₹848.80
+19.5%
12.6%₹1,096.00₹670.00₹1,339.5020
Apr ’24₹810.35
₹927.30
+14.4%
9.2%₹1,115.00₹757.00₹1,241.0520
Mar ’24₹807.70
₹929.57
+15.1%
8.8%₹1,096.00₹757.00₹1,193.0521
Feb ’24₹853.45
₹952.29
+11.6%
10.2%₹1,105.00₹757.00₹1,114.4521
Jan ’24₹843.10
₹958.48
+13.7%
10.1%₹1,105.00₹757.00₹1,119.3521
Dec ’23₹864.65
₹963.18
+11.4%
10.0%₹1,105.00₹757.00₹1,149.7022
Nov ’23₹924.65
₹1,002.27
+8.4%
9.9%₹1,160.00₹785.00₹978.7522

Analyst Forecast: Target price is lower than the current share price.

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