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Check Before You Invest : Ipca Laboratories Ltd

BSE: 524494 NSE: IPCALAB ISIN: INE571A01038
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Ipca Laboratories Ltd belong to?
Ipca Laboratories Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Ipca Laboratories Ltd a good quality company?
Ipca Laboratories Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Ipca Laboratories Ltd undervalued or overvalued?
Ipca Laboratories Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Ipca Laboratories Ltd a good buy now?
Ipca Laboratories Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Ipca Laboratories Ltd?
Ipca Laboratories Ltd revenue growth is 8.4% for FY-2025 , which is below its 5 year CAGR of 8.9% , indicating slower growth.
Q.2 Gross Profit margin of Ipca Laboratories Ltd?
Ipca Laboratories Ltd Gross profit margin which is the profit after deduction of direct costs, is 23% for FY-2025 , which is in line with its 5 year median of 23% , indicating stable margins.
Q.3 Operating Profit Margin of Ipca Laboratories Ltd?
Ipca Laboratories Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.51% for FY-2025 , which is in line with its 5 year median of 22.51% indicating stable margins.
Q.4 Net Profit Margin of Ipca Laboratories Ltd?
Ipca Laboratories Ltd Net Profit Margin is 9.81% for FY-2025 , is in line with with its 5 year median of 9.81%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 23 23
Operating Profit Margin 22.51 22.51
Net Profit Margin 9.81 9.81
Q.5 Return on Asset of Ipca Laboratories Ltd?
Ipca Laboratories Ltd Return on Asset is 7.34%, which is in line with its 5 year historical median of 7.34%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Ipca Laboratories Ltd?
Ipca Laboratories Ltd Return on equity is 9.83% for FY-2025 , which is in line with its historical median of 9.83%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Ipca Laboratories Ltd?
Ipca Laboratories Ltd Return on capital employed is 13.97% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Ipca Laboratories Ltd?
Ipca Laboratories Ltd Cash conversion cycle is 114 days, below its historical median of 126 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.75 0.75
ROE 9.83 9.83
ROCE 13.97 13.97
Cash Conversion Cycle 114 days 126 days
Q.9 Debt to Equity ratio of Ipca Laboratories Ltd?
Ipca Laboratories Ltd Debt-to-Equity ratio is 0.13 , which is in line with the industry average of 0.13 , indicating similar to debt levels in the industry.
Q.10 Debt to cash flow from operations of Ipca Laboratories Ltd?
Ipca Laboratories Ltd Debt to cash flow from operations is 0.63 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ipca Laboratories Ltd?
Promoters hold 44.72% of the Ipca Laboratories Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Ipca Laboratories Ltd vs industry peers?
Ipca Laboratories Ltd revenue CAGR is 8.87% , compared to the industry median CAGR of 8.87% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 6,635.4 8,127.2
Gross Profit 1,526.1 1,337.7
Operating Profit 1,490 1,810
Net Profit 651 970
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.75 0.8
ROE 9.83 18.61
ROCE 13.97 17.96
Cash Conversion Cycle (days) 114.3 76

Valuation & price assessment

Q.1 Stock return of Ipca Laboratories Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 19.6% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 19.6% 6.6% 21.8% 5.3%
Q.3 Valuation ratios of Ipca Laboratories Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 46.04 25.96 40.28
Price to Book 4.81 0.00 2.77
Price to Sales 5.18 5.23 2.65
EV to EBITDA 20.99 18.75 15.67

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