Ipca Laboratories Ltd (IPCALAB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Glenmark Pharma

Laurus Labs

Ajanta Pharma

Biocon

Ipca Labs

J B Chemicals &

Emcure Pharma

Gland Pharma

Abbott India

Glaxosmi. Pharma

Anthem Bioscienc

Why is Ipca Laboratories Ltd ?

Company has a low Debt to Equity ratio (avg) at 0.04 times

Poor long term growth as Operating profit has grown by an annual rate 3.67% of over the last 5 years

The company has declared Positive results for the last 7 consecutive quarters

PAT(Latest six months) At Rs 636.61 cr has Grown at 33.29%
ROCE(HY) Highest at 17.89%
INVENTORY TURNOVER RATIO(HY) Highest at 3.72 times

With ROE of 13.2, it has a Expensive valuation with a 5.2 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 8.90%, its profits have risen by 42% ; the PEG ratio of the company is 0.9

High Institutional Holdings at 47.95%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 0.75% over the previous quarter.

Consistent Returns over the last 3 years

Along with generating 8.90% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ipca Labs should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ipca Labs for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ipca Labs

8.9%

0.26

33.62%

Sensex

-2.38%

-0.19

12.70%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.06%

EBIT Growth (5y)

3.67%

EBIT to Interest (avg)

49.00

Debt to EBITDA (avg)

0.85

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.98

Tax Ratio

26.88%

Dividend Payout Ratio

13.76%

Pledged Shares

Institutional Holding

47.95%

ROCE (avg)

18.54%

ROE (avg)

12.01%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.22

EV to EBIT

25.64

EV to EBITDA

20.16

EV to Capital Employed

5.21

EV to Sales

4.08

PEG Ratio

0.89

Dividend Yield

0.13%

ROCE (Latest)

19.48%

ROE (Latest)

13.19%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

PAT(Latest six months)

At Rs 636.61 cr has Grown at 33.29%

ROCE(HY)

Highest at 17.89%

INVENTORY TURNOVER RATIO(HY)

Highest at 3.72 times

EPS(Q)

Highest at Rs 12.86

-1What is not working for the Company

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 263.80 cr

Loading Valuation Snapshot...

Here's what is working for Ipca Labs

Inventory Turnover Ratio- Half Yearly

Highest at 3.72 times and Grown

each half year in the last five half yearly periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Profit After Tax (PAT) - Quarterly

At Rs 311.86 cr has Grown at 27.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 244.82 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 12.86

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Ipca Labs

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 263.80 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents