Ipca Laboratories Ltd.
NSE: IPCALABNIFTY500
₹1,621.20+19.2%1Y
Last updated 02:54:03 IST· Public market feed (~15 min delay during market hours)
Ipca Laboratories Ltd.: A 30-second snapshot
IPCA Laboratories trades at ₹1,510, sitting above its 200-DMA (₹1,432) but just below the 50-DMA (₹1,517), with RSI at 46.6 in neutral territory. The stock is 7% below its 52-week high and has returned 10.8% over the past year. The fundamental picture is mixed: a trailing PE of 42 compresses sharply to a forward PE of 27.9, set against a debt-to-equity ratio of 14.4 that is rising and a quality score of 41 that ranks 4th of 6 sector peers.
P/E
42.0
Forward P/E
27.9
ROE
—
Debt / Equity
14.43
Profit Margin
+9.6%
Div. Yield
+0.3%
5Y ROE > 15%
1/5
5Y FCF > 0
4/5
Quality
42/100
Recent context
- ·No news articles were collected for IPCALAB in this run (total=0), leaving the recent newsflow dimension of this analysis uninformed; any material corporate events, regulatory actions, or product approvals in recent weeks are not reflected.
- ·The stock has gained 6.6% over 3 months and 10.8% over 1 year, outperforming in the near term while the analyst count stands at 18 with no aggregated rating available in the current data pull.
- ·Nearest technical support levels are at ₹1,488, ₹1,448, and ₹1,432 (coinciding with the 200-DMA), while resistance clusters at ₹1,530, ₹1,547, and ₹1,583 — the stock is currently positioned between these bands.
Strengths
- +5-year earnings CAGR of 23.6% is the strongest growth metric in the profile, indicating the company has compounded bottom-line results meaningfully over the medium term.
- +Price is above the 200-DMA (₹1,432 vs ₹1,510 current), and the 52-week drawdown is contained at -7%, suggesting the longer-term trend structure remains intact relative to many peers.
- +FCF was positive in 4 of the observable years, indicating the business has generated cash in the majority of tracked periods despite elevated leverage.
- +Forward PE of 27.9 represents a 34% discount to the trailing PE of 42.0, and sits between Cipla (23.1) and Sun Pharma (40.8), placing IPCALAB in the mid-range of sector PE on a forward basis.
Weaknesses
- −Debt-to-equity of 14.4 with a rising trend is a significant structural concern for a pharma company; the sector median D/E for large-cap peers is far lower, and rising debt combined with a consistency score of 32/100 indicates the balance sheet has not been a source of quality.
- −ROE data is not available and roeYearsAbove15 is only 1 of observed years, meaning sustained high-return-on-equity cannot be established from the available data — a key gap for assessing competitive moat.
- −Quality score of 41 ranks 4th of 6 peers in the sector; the two highest-scoring peers (Max Healthcare at 54, Sun Pharma at 50) both score materially above IPCALAB, placing it in the lower half of the peer quality distribution.
- −5-year revenue CAGR of 6.6% is notably lower than the 23.6% earnings CAGR; this wide divergence — while partly explainable by margin expansion — raises questions about the durability of earnings growth without a commensurate top-line driver.
Open questions
- ?Does the debt-to-equity of 14.4 reflect long-term borrowings for capacity expansion, working-capital financing, or acquisition-related leverage — and how does the repayment schedule interact with the projected earnings growth embedded in the forward PE?
- ?Is the divergence between 5-year earnings CAGR (23.6%) and revenue CAGR (6.6%) driven primarily by operating leverage, one-time cost reductions, or changes in product mix — and which of these drivers is most likely to persist?
- ?How has IPCALAB performed relative to its branded generics peers in domestic formulations versus exports, given that regulatory risk profiles differ significantly between those two segments?
- ?Given that quality score ranks 4th of 6 peers and consistency score is 32/100, what specific changes in capital allocation or earnings quality would need to occur to close the gap with higher-scoring peers like Sun Pharma and Max Healthcare?
Peer comparison: Pharma
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| IPCALAB | Ipca Laboratories Ltd.You're viewing | 42.0 | — | 41 |
| Industry avg | across 5 peers | 43.5 | +16.1% | 42 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 70.9 | — | 54 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 40.8 | — | 50 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 64.0 | — | 42 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 18.9 | +16.1% | 32 |
| CIPLA | Cipla Ltd. | 23.1 | — | 30 |
Technical state
Current price
₹1,510.00
SMA 50
₹1,517.56
SMA 200
₹1,432.45
RSI (14)
46.6 (neutral)
From 52w high
-7.0%
1Y return
+10.8%
3M return
+6.6%
50-DMA
Below
200-DMA
Above
Algorithmic support levels
₹1,488.30
₹1,448.10
₹1,432.00
Algorithmic resistance levels
₹1,530.00
₹1,547.40
₹1,582.60
Risk flags
- highDebt-to-equity of 14.4 is extremely elevated for a pharma company; debt trend is classified as rising, and the consistency score of 32/100 reflects poor capital-structure discipline over the measurement period.
- highROE data is unavailable for IPCALAB in the persistence block; roeYearsAbove15 is only 1 of the years available, indicating sustained high-return-on-equity has not been demonstrated in the observable history.
- mediumQuality score of 41 ranks 4th of 6 peers in the pharma sector; Sun Pharma (50) and Max Healthcare (54) score materially higher, suggesting IPCALAB sits in the lower half of peer quality.
- mediumZero news articles collected for this run (total=0); news sentiment is based on no data, so sentiment classification of neutral is uninformative and the news block cannot be used for this analysis.
- low5-year revenue CAGR of 6.6% is modest for a mid-cap pharma; while 5-year earnings CAGR is 23.6%, the gap between earnings and revenue growth warrants monitoring for sustainability of margin expansion.
Cross-section contradictions
- 5-year earnings CAGR of 23.6% is substantially higher than revenue CAGR of 6.6%, yet the consistency score is only 32/100 and FCF was positive in only 4 of available years — strong headline earnings growth does not appear to have translated uniformly into cash generation or balance-sheet quality.
- Forward PE of 27.9 represents a meaningful compression from trailing PE of 42.0, implying analyst consensus embeds significant earnings acceleration; however, with ROE unavailable and D/E at 14.4 and rising, the basis for that acceleration is not visible in the current data.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 12 May 2026 · rotates through NIFTY 500 every ~5 days