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IPCALAB · Healthcare ₹1965.0 +0.56% Mkt Cap ₹49796 Cr overvalued

IPCALAB

Healthcare Drug Manufacturers - Specialty & Generic
₹1965.0
+0.56% today · 30d +12.91%
as of 2026-09-04
Price · Daily Candles
“Ipca Labs surges with strong Q4 profit, DIIs hike stakes amidst FII retreat.”
Ipca Laboratories reported robust Q4 (2025) performance, with net profit surging by 31.59% YoY to ₹364 Cr and revenue growing 6.55% YoY to ₹2392 Cr. Despite this, the stock trades at a TTM P/E of 44.05, and analysts project a median target price of ₹1689.0, suggesting a slight upside from its current ₹1579.8.
BULL CASE
+Q4 2025 net profit increased by 31.59% YoY to ₹364 Cr, outpacing revenue growth of 6.55% to ₹2392 Cr.
+Annual revenue for 2025 grew 13.19% YoY to ₹8940 Cr, with net profit up 43.46% YoY to ₹785 Cr.
+DIIs increased their stake by 0.13% QoQ to 37.45% in Q4 2025.
+ML predictions indicate strong sales growth, with sales_1y_recent_2y at a rank of 0.807, sales_1y_rolling_4y at 0.78, and sales_1y_stable_7y at 0.837.
+The company's Business Score ranks Growth and Performance as STRONG, at 80 and 75 respectively, and Risk as LOW at 90.
BEAR CASE
The stock is considered 'overvalued' with an intrinsic value of ₹843.71 against a current price of ₹1579.8, indicating a margin of safety of -46.6%.
Net profit has experienced a 3-year CAGR decline of -4.08% from 2022 to 2025.
The TTM P/E of 44.05 is higher than the sector average, with peers like DRREDDY at 19.55 and CIPLA at 29.52.
Return on Capital Employed (ROCE) at 15.0% trails peers significantly, with SUNPHARMA at 22.46% and CIPLA at 25.09%.
⟳ What Changed
₹ Latest Earnings · Q ending 2025-12-31
REVENUE
₹2392 Cr
+6.55% YoY
NET PROFIT
₹364 Cr
+31.59% YoY
OPM
22.94%
+1.61pp YoY
EPS
₹12.86
PE 44.05
Intrinsic value · DCF ₹1070.81 · Margin of safety -45.5% (overvalued) · FCF yield 1.1%
◇ Sector Position
Ipca Labs trades at a TTM P/E of 44.05, placing it above cheaper peers like DRREDDY (P/E 19.55) and CIPLA (P/E 29.52), while its ROCE of 15.0% lags significantly behind the sector's best performers like DRREDDY (27.63%) and CIPLA (25.09%).
PEERPEROCE %
IPCALAB44.0515.0
SUNPHARMA40.4122.46
DIVISLAB69.8121.47
CIPLA29.5225.09
+ 2 more peers — sign in to view
ML Forward Growth Predictions 🔒

9 ML-predicted forward-growth ranks across sales, EBIT, and FCF.

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75
SCORE / 100
Overall
6-axis composite of the sections below.
Performance STRONG 90
Valuation FAIR 40
Growth STRONG 80
Profitability HIGH 78
Technicals STRONG 70
Risk LOW 90
Key Stats
TTM PE
44.05
P/B
4.86
52W HIGH
₹2001.5
OFF HIGH
-1.82%
DIV YIELD
0.25%
MKT CAP
₹49796 Cr
◉ Active Signals
MACDBullish2.566
RSI(14)Bullish65.1
Near 52W HighBullish-1.82
Street Consensus
18 analysts
₹1658.67
mean target
Low ₹1350.0Now ₹1965.0High ₹1820.0
⧉ Strategy Fit 🔒

See which of ftInvstr's 50+ strategies hold IPCALAB and at what entry.

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