Fundamental Analysis of Ipca Laboratories Ltd

About the Company - Ipca Laboratories Ltd

Ipca Laboratories Ltd. is a Public Limited Listed company incorporated on 19/10/1949 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24239MH1949PLC007837 and registration number is 007837. Currently Company is involved in the business activities of Manufacture of allopathic pharmaceutical preparations. Company’s Total Operating Revenue is Rs. 5399.36 Cr. and Equity Capital is Rs. 25.37 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Pharmaceuticals	48, Kandivli Industrial Estate, Kandivli (West), Mumbai Maharashtra 400067	investors@ipca.com http://www.ipca.com

Management
Name	Position Held
Mr. Premchand Godha	Executive Chairman
Mr. Ajit Kumar Jain	Managing Director
Mr. Pranay Godha	Managing Director
Mr. Prashant Godha	Executive Director
Mr. Anand T Kusre	Independent Director
Dr.(Mrs.) Manisha Premnath	Independent Director
Mr. Kamal Kishore Seth	Independent Director
Dr. Narendra Mairpady	Independent Director

Basic Stock Data of Ipca Laboratories Ltd

Last Updated: July 6, 2024, 11:59 am

Market Cap	30,261 Cr.
Current Price	1,193
High / Low	1,375/749
Stock P/E	51.2
Book Value	250
Dividend Yield	0.34 %
ROCE	13.2 %
ROE	9.70 %
Face Value	1.00
PEG Ratio	-12.34

Ipca Laboratories Ltd Quarterly Results

Month	Sep 2020	Dec 2020	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023
Sales	1,361	1,410	1,115	1,566	1,544	1,430	1,289	1,586	1,601	1,546	1,512	1,585	2,034
Expenses	1,003	1,045	886	1,152	1,184	1,123	1,070	1,317	1,341	1,330	1,331	1,278	1,713
Operating Profit	358	365	229	414	360	308	219	269	260	216	181	308	321
OPM %	26%	26%	21%	26%	23%	22%	17%	17%	16%	14%	12%	19%	16%
Other Income	15	15	20	21	18	12	15	22	36	31	36	45	39
Interest	2	2	2	2	1	1	3	7	9	11	18	31	44
Depreciation	52	54	52	56	57	59	61	62	64	67	70	69	90
Profit before tax	319	324	195	377	320	260	170	223	223	169	129	252	225
Tax %	16%	17%	16%	19%	21%	22%	17%	33%	35%	32%	37%	34%	39%
Net Profit	267	268	161	307	252	198	132	145	146	110	78	164	136
EPS in Rs	10.53	10.46	6.36	12.09	9.86	7.74	5.13	5.64	5.67	4.25	3.02	6.42	5.72

Ipca Laboratories Ltd Quarterly Chart

Ipca Laboratories Ltd Profit & Loss

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	2,359	2,813	3,282	3,144	2,867	3,156	3,258	3,746	4,619	5,395	5,797	6,204	6,677
Expenses	1,894	2,248	2,539	2,604	2,573	2,705	2,803	3,051	3,715	3,843	4,472	5,272	5,651
Operating Profit	465	565	743	541	294	451	455	695	904	1,552	1,325	932	1,026
OPM %	20%	20%	23%	17%	10%	14%	14%	19%	20%	29%	23%	15%	15%
Other Income	11	13	21	32	21	11	41	56	65	59	54	123	151
Interest	44	36	30	32	35	27	28	22	20	12	11	48	105
Depreciation	67	87	103	180	163	173	178	182	210	209	232	262	296
Profit before tax	364	454	631	361	117	262	291	546	739	1,389	1,136	745	776
Tax %	24%	29%	24%	28%	18%	26%	18%	19%	18%	17%	20%	34%
Net Profit	277	324	479	254	93	195	239	442	604	1,141	890	479	488
EPS in Rs	11.01	12.82	18.96	10.07	3.69	7.71	9.49	17.60	23.99	44.94	34.85	18.58	19.41
Dividend Payout %	15%	16%	13%	5%	0%	6%	5%	9%	10%	9%	11%	22%

Ipca Laboratories Ltd Profit & Loss Yearly Chart

Ipca Laboratories Ltd Growth

Compounded Sales Growth
10 Years:	9%
5 Years:	16%
3 Years:	13%
TTM:	24%

Compounded Profit Growth
10 Years:	2%
5 Years:	6%
3 Years:	-20%
TTM:	30%

Stock Price CAGR
10 Years:	10%
5 Years:	19%
3 Years:	4%
1 Year:	52%

Return on Equity
10 Years:	13%
5 Years:	15%
3 Years:	11%
Last Year:	10%

Last Updated: June 29, 2024, 1:39 pm

Ipca Laboratories Ltd Balance Sheet

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Sep 2023
Equity Capital	25	25	25	25	25	25	25	25	25	25	25	25	25
Reserves	1,229	1,529	1,934	2,183	2,234	2,430	2,663	3,097	3,590	4,676	5,439	5,817	6,123
Borrowings	601	617	603	935	867	716	628	465	501	265	807	1,481	1,987
Other Liabilities	472	526	648	669	765	788	799	961	1,142	1,099	1,349	1,300	3,248
Total Liabilities	2,327	2,697	3,211	3,812	3,892	3,960	4,116	4,549	5,258	6,066	7,622	8,623	11,384
Fixed Assets	944	1,104	1,354	1,800	2,014	1,983	1,953	1,940	2,059	2,072	2,402	2,751	4,588
CWIP	95	129	165	267	129	95	73	66	133	235	306	140	267
Investments	34	9	9	16	26	136	87	120	310	505	989	626	760
Other Assets	1,255	1,455	1,683	1,729	1,723	1,746	2,003	2,422	2,756	3,254	3,924	5,105	5,769
Total Assets	2,327	2,697	3,211	3,812	3,892	3,960	4,116	4,549	5,258	6,066	7,622	8,623	11,384

Ipca Laboratories Ltd Reserves and Borrowings Chart

Ipca Laboratories Ltd Cash Flow

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Cash from Operating Activity	354	389	522	468	709	282	341	501	570	1,090	856	806
Cash from Investing Activity	-280	-260	-369	-689	-218	-149	-135	-165	-509	-521	-851	-725
Cash from Financing Activity	-72	-83	-136	251	-462	-159	-130	-183	-137	-306	427	507
Net Cash Flow	2	46	18	29	29	-26	75	153	-76	264	432	588

Ipca Laboratories Ltd Financial Efficiency Indicators

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	54	50	41	57	58	67	66	71	55	57	58	80
Inventory Days	247	272	293	289	290	286	316	294	337	337	276	350
Days Payable	89	110	97	145	130	137	154	135	140	101	83	110
Cash Conversion Cycle	212	213	237	200	218	216	228	229	251	293	251	320
Working Capital Days	112	98	106	84	94	107	109	113	119	127	119	175
ROCE %	24%	28%	14%	5%	9%	10%	16%	19%	31%	20%	11%

Ipca Laboratories Ltd Financial Efficiency Indicators Chart

Ipca Laboratories Ltd Share Holding Pattern

Month	Dec 2020	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023
Promoters	46.29%	46.29%	46.29%	46.29%	46.29%	46.29%	46.29%	46.29%	46.29%	46.29%	46.29%	46.29%
FIIs	18.22%	17.47%	17.81%	18.46%	12.34%	11.02%	10.61%	10.57%	10.46%	10.58%	10.05%	9.86%
DIIs	24.22%	24.82%	25.12%	25.24%	30.02%	32.70%	33.49%	33.46%	33.71%	33.74%	34.86%	34.72%
Government	0.28%	0.28%	0.22%	0.22%	0.24%	0.24%	0.24%	0.32%	0.32%	0.32%	0.32%	0.32%
Public	10.99%	11.14%	10.57%	9.80%	11.11%	9.75%	9.37%	9.34%	9.22%	9.06%	8.46%	8.80%
No. of Shareholders	1,01,476	1,00,626	1,05,428	95,239	1,06,779	1,15,335	1,10,818	1,11,043	1,08,177	1,10,296	99,889	95,930

Ipca Laboratories Ltd Shareholding Pattern Chart

No. of Ipca Laboratories Ltd Shareholders

Ipca Laboratories Ltd Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan	13,486,510	2.77	1326.74	3,541,831	2024-07-05	280.78%
Kotak Emerging Equity Fund - Regular Plan	7,013,049	2.05	689.91	3,541,831	2024-07-05	98.01%
DSP Mid Cap Fund	5,704,808	3.88	561.21	3,541,831	2024-07-05	61.07%
Parag Parikh Flexi Cap Fund	3,541,831	0.79	348.43	3,541,831	2024-07-05	0%
DSP Small Cap Fund	3,229,623	2.68	317.71	3,541,831	2024-07-05	-8.81%
Nippon India Growth Fund	2,843,198	1.47	279.7	3,541,831	2024-07-05	-19.73%
ICICI Prudential Multi Asset Fund	2,565,169	1.01	252.35	3,541,831	2024-07-05	-27.58%
HDFC Balanced Advantage Fund - Regular Plan	2,447,056	0.38	240.73	3,541,831	2024-07-05	-30.91%
UTI Flexi Cap Fund	2,167,179	0.87	213.2	3,541,831	2024-07-05	-38.81%
HSBC Midcap Fund	1,946,300	2.39	191.47	3,541,831	2024-07-05	-45.05%

Ipca Laboratories Ltd ROCE Trend

Ipca Laboratories Ltd EPS Trend

Ipca Laboratories Ltd Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	1.00	1.00	1.00	2.00	2.00
Basic EPS (Rs.)	21.57	18.58	34.85	45.01	47.77
Diluted EPS (Rs.)	21.57	18.58	34.85	45.01	47.73
Cash EPS (Rs.)	34.94	29.70	45.07	107.06	65.05
Book Value[Excl.RevalReserv]/Share (Rs.)	304.57	233.16	219.51	371.79	288.18
Book Value[Incl.RevalReserv]/Share (Rs.)	304.57	233.16	219.51	371.79	288.18
Revenue From Operations / Share (Rs.)	303.71	246.13	229.79	427.28	367.92
PBDIT / Share (Rs.)	56.99	41.48	54.23	126.70	77.06
PBIT / Share (Rs.)	42.91	31.17	45.07	110.21	60.40
PBT / Share (Rs.)	33.22	29.38	44.77	109.50	59.10
Net Profit / Share (Rs.)	20.86	19.39	35.91	90.57	48.39
NP After MI And SOA / Share (Rs.)	21.57	18.58	34.85	89.87	47.99
PBDIT Margin (%)	18.76	16.85	23.59	29.65	20.94
PBIT Margin (%)	14.12	12.66	19.61	25.79	16.41
PBT Margin (%)	10.93	11.93	19.48	25.62	16.06
Net Profit Margin (%)	6.86	7.87	15.62	21.19	13.15
NP After MI And SOA Margin (%)	7.10	7.54	15.16	21.03	13.04
Return on Networth / Equity (%)	8.64	8.06	16.09	24.24	16.71
Return on Capital Employeed (%)	12.44	11.59	18.52	28.48	19.40
Return On Assets (%)	4.93	5.46	11.57	18.78	11.52
Long Term Debt / Equity (X)	0.09	0.11	0.07	0.00	0.02
Total Debt / Equity (X)	0.21	0.24	0.14	0.05	0.11
Asset Turnover Ratio (%)	0.78	0.76	0.79	0.91	0.89
Current Ratio (X)	2.35	2.87	3.04	2.96	2.15
Quick Ratio (X)	1.30	1.91	1.77	1.59	1.16
Inventory Turnover Ratio (X)	1.05	0.94	0.95	1.10	1.22
Dividend Payout Ratio (NP) (%)	0.00	21.53	11.47	8.90	16.67
Dividend Payout Ratio (CP) (%)	0.00	13.84	9.08	7.52	12.37
Earning Retention Ratio (%)	0.00	78.47	88.53	91.10	83.33
Cash Earning Retention Ratio (%)	0.00	86.16	90.92	92.48	87.63
Interest Coverage Ratio (X)	10.46	23.11	178.91	177.79	59.01
Interest Coverage Ratio (Post Tax) (X)	5.61	11.80	119.46	128.08	38.05
Enterprise Value (Cr.)	33899.87	20234.90	27148.88	24038.82	17785.27
EV / Net Operating Revenue (X)	4.40	3.24	4.66	4.44	3.83
EV / EBITDA (X)	23.45	19.23	19.73	14.96	18.27
MarketCap / Net Operating Revenue (X)	4.08	3.29	4.62	4.45	3.77
Retention Ratios (%)	0.00	78.46	88.52	91.09	83.32
Price / BV (X)	4.96	3.52	4.90	5.13	4.83
Price / Net Operating Revenue (X)	4.08	3.29	4.62	4.45	3.77
EarningsYield	0.01	0.02	0.03	0.04	0.03

Ipca Laboratories Ltd Profitability Ratios (%)

Ipca Laboratories Ltd Liquidity Ratios

Ipca Laboratories Ltd Liquidity Ratios (%)

Ipca Laboratories Ltd Interest Coverage Ratios (%)

Ipca Laboratories Ltd Valuation Ratios

Fair Value

Fair Value: 1,245.82

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 4.43% compared to the current price 1193

Intrinsic Value: 1,194.14

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 0.10% compared to the current price ₹1193

Last 5 Year EPS CAGR: -4.15%

*Investments are subject to market risks

Strength and Weakness of Ipca Laboratories Ltd Stock

Strength	Weakness
The stock has a high average ROCE of 15.58%, which is a positive sign. The company has higher reserves (3,303.38 cr) compared to borrowings (805.62 cr), indicating strong financial stability. The company has shown consistent growth in sales (3.62 cr) and profit (406.77 cr) over the years.	The stock has a high average Working Capital Days of 113.58, which may not be favorable. The stock has a high average Cash Conversion Cycle of 239.00, which may not be favorable.

FAQ

What is the latest fair value of Ipca Laboratories Ltd?

The latest fair value of Ipca Laboratories Ltd is ₹1245.82.

What is the Market Cap of Ipca Laboratories Ltd?

The Market Cap of Ipca Laboratories Ltd is 30,261 Cr..

What is the current Stock Price of Ipca Laboratories Ltd as on 06 July 2024?

The current stock price of Ipca Laboratories Ltd as on 06 July 2024 is 1,193.

What is the High / Low of Ipca Laboratories Ltd stocks in FY 2024?

In FY 2024, the High / Low of Ipca Laboratories Ltd stocks is 1,375/749.

What is the Stock P/E of Ipca Laboratories Ltd?

The Stock P/E of Ipca Laboratories Ltd is 51.2.

What is the Book Value of Ipca Laboratories Ltd?

The Book Value of Ipca Laboratories Ltd is 250.

What is the Dividend Yield of Ipca Laboratories Ltd?

The Dividend Yield of Ipca Laboratories Ltd is 0.34 %.

What is the ROCE of Ipca Laboratories Ltd?

The ROCE of Ipca Laboratories Ltd is 13.2 %.

What is the ROE of Ipca Laboratories Ltd?

The ROE of Ipca Laboratories Ltd is 9.70 %.

What is the Face Value of Ipca Laboratories Ltd?

The Face Value of Ipca Laboratories Ltd is 1.00.