IPCA Laboratories Limited (IPCALAB) AI Stock Analysis

• Market Cap: ₹362.84B
• Dividend Yield: 0.28%
• Average Volume (3M): 12.66K
• Price to Earnings (P/E): 46.6
• Beta (1Y): 0.63
• Revenue Growth: 11.49%
• EPS Growth: 35.00%
• Country: IN
• Employees: 17,335
• Sector: Healthcare
• Sector Strength: 47
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 9.19
• Shares Outstanding: 253,658,220
• 10 Day Avg. Volume: 6,526
• 30 Day Avg. Volume: 12,656
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,521.50
• Price Target Upside: 6.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 64 Neutral
• Price Target: ₹1,517.00 ▲(6.54% Upside)

IPCA Laboratories' overall stock score is primarily influenced by its strong financial performance, with solid revenue growth and a healthy balance sheet. However, technical indicators suggest neutral to bearish momentum, and the high P/E ratio indicates potential overvaluation. The low dividend yield further impacts the valuation negatively.

IPCA Laboratories Limited Business Overview & Revenue Model

Company Description

IPCA Laboratories Limited (IPCALAB) is a leading Indian pharmaceutical company engaged in the manufacturing and marketing of pharmaceutical formulations, active pharmaceutical ingredients (APIs), and intermediates. With a robust product portfolio, IPCA caters to various therapeutic segments including cardiovascular, anti-diabetic, anti-malarial, and anti-inflammatory medications. The company's operations span across domestic and international markets, with a strong presence in over 120 countries.

How the Company Makes Money

IPCA Laboratories generates revenue primarily through the sale of pharmaceutical formulations and APIs. The company's formulations business involves the manufacturing and marketing of branded and generic medicines, which are distributed through a wide network of pharmacies, hospitals, and healthcare institutions globally. The API segment supplies active ingredients to other pharmaceutical companies for drug manufacturing. Additionally, IPCA's revenue is bolstered by its focus on research and development, which enables the introduction of new and improved products. Strategic partnerships and collaborations with other pharmaceutical firms and healthcare providers also contribute to its revenue streams by expanding its market reach and product offerings.

IPCA Laboratories Limited Financial Statement Overview

Summary

IPCA Laboratories shows strong revenue growth and a solid balance sheet with a healthy equity ratio. However, there are fluctuations in net profit margin and free cash flow growth, indicating areas for improvement in operational efficiency and profitability.

Income Statement

IPCA Laboratories has demonstrated consistent revenue growth over recent years, with a notable increase from 45,587 million in 2020 to 89,395.9 million in 2025. The gross profit margin is strong, averaging over 40% annually, indicating effective cost management. However, the net profit margin has seen fluctuations, primarily due to varying EBIT margins and changes in operating expenses. The company needs to focus on enhancing its EBIT margin to maintain stable profitability.

Balance Sheet

The balance sheet of IPCA Laboratories shows a healthy equity ratio, consistently above 50%, signifying solid financial stability and a strong capital structure. The debt-to-equity ratio is moderate, reflecting controlled leverage, although it increased slightly in recent years. Return on equity has been somewhat volatile, influenced by changes in net income, suggesting potential areas for operational improvements.

Cash Flow

IPCA Laboratories exhibits sound cash flow management, with positive operating cash flow and free cash flow over the years. However, the free cash flow growth rate has been inconsistent, pointing to fluctuations in capital expenditures and operating efficiencies. The operating cash flow to net income ratio is healthy, indicating good conversion of earnings into cash flows.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2021	Dec 2020
Income Statement
Total Revenue	87.26B	89.40B	76.22B	62.44B	57.66B	45.59B
Gross Profit	54.06B	37.79B	47.75B	38.37B	36.60B	13.49B
EBITDA	15.68B	16.14B	13.30B	10.53B	13.78B	9.65B
Net Income	7.29B	7.38B	5.47B	4.71B	8.84B	6.06B
Balance Sheet
Total Assets	0.00	117.61B	111.01B	86.26B	76.24B	52.60B
Cash, Cash Equivalents and Short-Term Investments	9.03B	11.08B	8.45B	21.79B	13.59B	4.18B
Total Debt	0.00	13.63B	14.38B	14.81B	8.07B	5.01B
Total Liabilities	-81.18B	33.72B	33.74B	27.11B	20.82B	16.19B
Stockholders Equity	81.18B	69.48B	63.32B	58.42B	54.92B	36.27B
Cash Flow
Free Cash Flow	0.00	5.00B	5.33B	3.11B	3.77B	2.64B
Operating Cash Flow	0.00	12.75B	9.45B	8.06B	8.56B	5.70B
Investing Cash Flow	0.00	-8.94B	-12.92B	-7.25B	-8.55B	-5.10B
Financing Cash Flow	0.00	-2.13B	-5.53B	5.07B	4.27B	-1.37B

IPCA Laboratories Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1423.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IPCALAB, the sentiment is Positive. The current price of 1423.85 is above the 20-day moving average (MA) of 1404.43, above the 50-day MA of 1416.51, and below the 200-day MA of 1456.12, indicating a neutral trend. The MACD of -7.82 indicates Negative momentum. The RSI at 52.61 is Neutral, neither overbought nor oversold. The STOCH value of 58.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:IPCALAB.

IPCA Laboratories Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AJANTPHARM	72 Outperform	₹321.80B	34.60		2.10%	10.92%	9.76%
GLAND	68 Neutral	₹317.69B	41.24		0.95%	-2.34%	6.64%
IPCALAB	64 Neutral	₹362.84B	46.60		0.28%	11.49%	35.00%
GLENMARK	62 Neutral	₹550.97B	73.11		0.13%	10.99%	―
BIOCON	61 Neutral	₹471.19B	111.88		0.14%	6.80%	-75.66%
LAURUSLABS	54 Neutral	₹468.76B	92.06		0.14%	17.31%	242.99%
Sector *	51 Neutral	$7.81B	-0.22	-40.01%	2.29%	21.48%	-2.11%

IPCA Laboratories Limited Corporate Events

IPCA Laboratories Confirms Compliance with SEBI Regulations for Q2 2025

IPCA Laboratories Limited has submitted a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended June 30, 2025. This certificate, issued by MUFG Intime India Pvt. Ltd., confirms that securities received for dematerialization during the quarter were processed and listed on the relevant stock exchanges. The announcement underscores IPCA’s adherence to regulatory requirements, which is crucial for maintaining investor confidence and ensuring smooth operations within the financial markets.