IPCA Laboratories Intrinsic Value

IPCALAB • Healthcare
Current Stock Price
₹1575.00
Primary Intrinsic Value
₹980.32
Market Cap
₹3938 Cr
+100.0% Upside
Median Value
₹3150.00
Value Range
₹473 - ₹3938
Assessment
Trading Below Calculated Value
Safety Margin
50.0%

IPCALAB Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹980.32 ₹784.26 - ₹1176.38 -37.8% EPS: ₹44.56, Sector P/E: 22x
Book Value Method asset ₹3937.50 ₹3543.75 - ₹4331.25 +150.0% Book Value/Share: ₹3355.20, P/B: 2.0x
Revenue Multiple Method revenue ₹3150.00 ₹2835.00 - ₹3465.00 +100.0% Revenue/Share: ₹4134.40, P/S: 2.0x
EBITDA Multiple Method earnings ₹3150.00 ₹2835.00 - ₹3465.00 +100.0% EBITDA: ₹2060.00Cr, EV/EBITDA: 10x
Simple DCF (5Y) dcf ₹3937.50 ₹3150.00 - ₹4725.00 +150.0% CF Growth: 4.9%, Discount: 15%
PEG Ratio Method growth ₹472.50 ₹425.25 - ₹519.75 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹688.45 ₹619.61 - ₹757.30 -56.3% Revenue Growth: 6.0%, Adj P/E: 15.5x
ROE Based Valuation profitability ₹3150.00 ₹2835.00 - ₹3465.00 +100.0% ROE: 13.4%, P/E Multiple: 12x
Graham Defensive Method conservative ₹1834.10 ₹1650.69 - ₹2017.51 +16.5% EPS: ₹44.56, BVPS: ₹3355.20
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

IPCALAB Intrinsic Value Analysis

What is the intrinsic value of IPCALAB?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of IPCA Laboratories (IPCALAB) is ₹3150.00 (median value). With the current market price of ₹1575.00, this represents a +100.0% variance from our estimated fair value.

The valuation range spans from ₹472.50 to ₹3937.50, indicating ₹472.50 - ₹3937.50.

Is IPCALAB undervalued or overvalued?

Based on our multi-method analysis, IPCA Laboratories (IPCALAB) appears to be trading below calculated value by approximately 100.0%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 6.05 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.40 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 13.4% Industry Standard: 15%+ Above 10% Measures shareholder return efficiency
Operating Margin 19.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 0.88x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹1,321 Cr ₹886 Cr Positive Free Cash Flow 8/10
March 2024 ₹945 Cr ₹338 Cr Positive Free Cash Flow 7/10
March 2023 ₹806 Cr ₹444 Cr Positive Free Cash Flow 8/10
March 2022 ₹856 Cr ₹431 Cr Positive Free Cash Flow 8/10
March 2021 ₹1,090 Cr ₹830 Cr Positive Free Cash Flow 8/10