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Ipca Laboratories Ltd

NSE: IPCALAB BSE: 524494

1533.90

(2.86%)

Thu, 12 Mar 2026, 10:48 pm

Ipca Laboratories Analysis

dividend

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Pros

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    Cons

    • Ipca Laboratories is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
    • No need to calculate the sustainability of Ipca Laboratories's dividends as it is not paying a notable one for India.
    • No need to calculate the sustainability of Ipca Laboratories's dividends in 3 years as they are not expected to pay a notable one for India.
    • Ipca Laboratories is not paying a notable dividend for India, therefore no need to check if the payments are stable.
    • Ipca Laboratories's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
    • Ipca Laboratories's dividend is below the markets top 25% of dividend payers in India (3.08%).

    future

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    Pros

    • Ipca Laboratories's earnings growth is expected to exceed the low risk savings rate of 7.2%.
    • Ipca Laboratories's earnings are expected to exceed the low risk growth rate next year.
    • Performance (ROE) is expected to be above the current IN Pharmaceuticals industry average.
    • An improvement in Ipca Laboratories's performance (ROE) is expected over the next 3 years.
    • Ipca Laboratories's revenue growth is expected to exceed the India market average.
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    Cons

    • Cash flow for Ipca Laboratories is expected to increase but not above the 50% threshold in 2 years time.
    • Ipca Laboratories's earnings are expected to grow by 18.4% yearly, however this is not considered high growth (20% yearly).
    • Ipca Laboratories's earnings growth is positive but not above the India market average.
    • Ipca Laboratories's net income is expected to increase but not above the 50% threshold in 2 years time.
    • Ipca Laboratories is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
    • Ipca Laboratories's revenue is expected to increase but not above the 50% threshold in 2 years time.
    • Ipca Laboratories's revenue is expected to grow by 12.9% yearly, however this is not considered high growth (20% yearly).

    health

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    Pros

    • Ipca Laboratories is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • Ipca Laboratories is profitable, therefore cash runway is not a concern.
    • Ipca Laboratories is profitable, therefore cash runway is not a concern.
    • Debt is well covered by operating cash flow (425.2%, greater than 20% of total debt).
    • Debt is covered by short term assets, assets are 21.9x debt.
    • Ipca Laboratories's cash and other short term assets cover its long term commitments.
    • The level of debt compared to net worth has been reduced over the past 5 years (39.8% vs 3.6% today).
    • Ipca Laboratories earns more interest than it pays, coverage of interest payments is not a concern.
    • Ipca Laboratories's level of debt (3.6%) compared to net worth is satisfactory (less than 40%).
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    Cons

    • High level of physical assets or inventory.

    management

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    Pros

    • The tenure for the Ipca Laboratories board of directors is about average.
    • Premchand's compensation has been consistent with company performance over the past year, both up more than 20%.
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    Cons

    • Premchand's remuneration is higher than average for companies of similar size in India.

    past

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    Pros

    • Ipca Laboratories's 1-year earnings growth exceeds its 5-year average (57% vs 25.9%)
    • Ipca Laboratories has delivered over 20% year on year earnings growth in the past 5 years.
    • Ipca Laboratories used its assets more efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
    • Ipca Laboratories has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
    • Ipca Laboratories's earnings growth has exceeded the IN Pharmaceuticals industry average in the past year (57% vs 22.7%).
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    Cons

    • Ipca Laboratories has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

    value

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    Pros

    • IPCALAB outperformed the Pharmaceuticals industry which returned 26.7% over the past year.
    • IPCALAB outperformed the Market in India which returned -14.5% over the past year.
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    Cons

    • Ipca Laboratories's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Ipca Laboratories's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Ipca Laboratories is overvalued based on assets compared to the IN Pharmaceuticals industry average.
    • Ipca Laboratories is poor value based on expected growth next year.
    • Ipca Laboratories is overvalued based on earnings compared to the IN Pharmaceuticals industry average.
    • Ipca Laboratories is overvalued based on earnings compared to the India market.
    • NSEI:IPCALAB is flat (0.2%) underperforming the Pharmaceuticals industry which returned 6.8% over the past month.
    • NSEI:IPCALAB is flat (0.2%) underperforming the market in India which returned 8% over the past month.

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