IPCA Laboratories Limited (IPCALAB) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of IPCA Laboratories Limited stock ₹1,508, price ₹1,942, that is 22.3% below the price, quality 63 out of 100. Rating: overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.
How to read this chart
60‑month range ₹668.58 – ₹2,010 · fair‑value band ₹875.18 – ₹1,960 · the ₹1,942 price screens above the ₹1,508 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 8, 2026.
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Ipca Laboratories Limited, an integrated pharmaceutical company, manufactures and markets formulations and active pharmaceutical ingredients (APIs) for various therapeutic segments in India, Europe, Africa, the Americas, Asia, the Commonwealth of Independent States, and Australasia.
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The company offers APIs in anti-hypertensive, anti-malarial, diuretic, DMARD, anti-hypertensive, and anthelmintic therapeutic areas.
It also provides generic and branded formulations in various therapeutic segments, including allergy, anti-neoplastic/cancer drugs, anti-arthritic, anti-epileptic, anti-hypertensive, cardiology, diabetes, dermatology, diabetology, emollients/protectives, fever, gastroenterology, helminthics, hepatoprotectives, immunosuppressant, infectious diseases, malaria, neurology, neuropathic pain, and NSAIDs, as well as nutraceuticals, ophthalmology, oral anti diabetes drug, orthopedics, probiotics, psychiatry, respiratory, rheumatology, and urology.
The company also exports its products worldwide. Ipca Laboratories Limited was incorporated in 1949 and is based in Mumbai, India.
Stock analysis
IPCA Laboratories Limited (IPCALAB) currently trades at ₹1,942, while our model-based Fair Value estimate is ₹1,508, 22% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of ₹1,263 per share, and 0 of the 26 models we run sit above the ₹1,942 price.
Bear case: the Economic Profit group reads lowest at ₹637.09, and 26 of the 26 models stay below the price. Data coverage for this calculation is medium.
Scenario range: ₹875.18 (bear) to ₹1,960 (bull), the price of ₹1,942 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 63/100 (solid quality), in the Healthcare sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
IPCA Laboratories Limited reported revenue of ₹96.5B in FY2026 versus ₹58.3B in FY2022, a compound +13.4%/yr. Reported net income was ₹11.4B in FY2026, compounding +6.6%/yr from FY2022.
Key figures
Market cap ₹493B (≈ $5.2B) Mid · P/E ratio 35.1 · P/S ratio 4.71 · EPS (TTM) ₹55.28 · Dividend yield 0.3% · Net margin 13.4% · Return on equity 15.6% · Return on assets (EBIT) 26.6% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 63 out of 100 (low confidence).
What moves the price
The share trades about 3% below its 52-week high and 50% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at −27% fair-value upside, at −22%, IPCALAB screens cheaper than that median.
Fair Value models
Bear₹875.18Fair Value ₹1,508Bull₹1,960
Price ₹1,942 · Downside -22.3%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (₹30.11 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
FCF DCF₹258.13₹436.29₹720.9178
Growth DCF₹252.99₹406.27₹634.4777
Residual Income₹294.28₹358.05₹533.6475
All 26 models by family
DCF Models
FCF DCF₹258.13₹436.29₹720.9178
Owner Earnings₹312.03₹530.18₹878.6974
5Y Revenue Exit₹608.26₹1,186₹2,00370
5Y EBITDA Exit₹774.67₹1,538₹2,53173
5Y P/E Exit₹541.49₹1,045₹1,64069
10Y Revenue Exit₹446.83₹924.80₹1,71263
10Y EBITDA Exit₹573.37₹1,165₹2,12865
10Y P/E Exit₹429.56₹828.36₹1,42661
Earnings-Based
Graham-Dodd₹305.85₹1,546₹2,13564
Lynch FV₹419.69₹599.56₹779.4361
PEG = 1.0₹419.69₹599.56₹779.4357
EPV₹639.50₹725.43₹797.2574
Dividend Discount
Gordon GGM₹16.24₹29.51₹40.9368
DDM Multi-Stage₹16.24₹26.83₹31.5067
Multiples
P/E Multiple₹742.14₹989.52₹1,23763
P/S Multiple₹573.47₹764.63₹955.7958
P/B Multiple₹1,046₹1,395₹1,74455
EV/EBIT₹1,162₹1,553₹1,94366
EV/EBITDA₹1,128₹1,508₹1,88767
EV/Revenue₹788.84₹1,131₹1,47353
Asset-Based
NCAV (Graham)₹53.78₹81.48₹101.8554
Growth DCF
Growth DCF₹252.99₹406.27₹634.4777
Rev-Margin DCF₹608.26₹1,159₹1,88870
Economic Profit
Residual Income₹294.28₹358.05₹533.6475
ROIC Compounder₹716.94₹916.12₹1,15672
Growth Earnings
Growth-Adj P/E₹653.11₹933.02₹1,21367
The fair value above starts from this blend and is adjusted for a year distorted by one-off effects.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.82/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+7.9%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+15.6%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.2%
Start year 2021 (pandemic). Over 10 years: +12.9% a year
Revenue growth 21 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.5%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: EBIT basis. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
≈ +0.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year+0.4%
Dividend (yield on the price)0.3%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5.2% vs 19.3%, slowing
Pace: the 5-year rate starts in 2021 (pandemic)
⚠ Rate on operating basis: 2026 sits 109% above its own trend.
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+44.9%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+10.6%
Yearly sales growth analysts expect, extended to five years.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +39.1% a year for the price and +6.2% for the forecasts.
Compare IPCA Laboratories Limited with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Drug Manufacturers - Specialty & Generic · 549 stocks
Beats the industry median on 7/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score63 · Above median
Fair Value upside−22.3% · Below median
Profitability
Return on equity (12 months)15.6% · Top 25%
Return on assets9.2% · Top 25%
Net margin (12 months)13.4% · Above median
Operating margin (12 months)19.9% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)14.8% · Above median
Dividend yield (12 months)0.3% · Bottom 25%
Balance sheet
Debt / equity0.01× · Below median
Valuation Multiplesvs Drug Manufacturers - Specialty & Generic median · lower = cheaper
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Is IPCA Laboratories Limited (IPCALAB) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of ₹1,508 versus a price of ₹1,942, about 22% lower (overvalued).
What is the fair value of IPCALAB?
Our model-based fair value for IPCA Laboratories Limited is ₹1,508 (as of Nov 8, 2026), built from audited fundamentals. The current price: ₹1,942.
What is the quality score of IPCALAB?
IPCA Laboratories Limited has a Quality Score of 63/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for IPCA Laboratories Limited (IPCALAB)?
Our model-based price target is the fair value of ₹1,508 (as of Nov 8, 2026) from 26 valuation models. Cautious scenario ₹875.18, optimistic scenario ₹1,960. It is a calculation from audited fundamentals, not an analyst target.
What is the IPCA Laboratories Limited stock forecast for 2026?
Our models put fair value at ₹1,508, about 22% lower versus a price of ₹1,942 (overvalued). Cautious scenario ₹875.18, optimistic scenario ₹1,960. The calculation is refreshed regularly with new filings.
What is the revenue of IPCA Laboratories Limited (IPCALAB)?
IPCA Laboratories Limited reported trailing-twelve-month revenue of about ₹105B (latest available figure, as of Nov 8, 2026).
Does IPCA Laboratories Limited pay a dividend?
IPCA Laboratories Limited currently shows a dividend yield of 0.31% relative to its recent price (as of Nov 8, 2026).
How much is the dividend of IPCA Laboratories Limited (IPCALAB) and when is the ex-dividend date?
IPCA Laboratories Limited pays a dividend of ₹6.00 per share a year, a dividend yield of 0.3%. The last ex-dividend date was Aug 7, 2026. A dividend has been paid every year since 2017. The payout ratio is 10.9% of earnings. Free cash flow covers the dividend 3.19 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into IPCA Laboratories Limited (IPCALAB)?
For today's price to be fair in a discounted-cash-flow model, IPCA Laboratories Limited would have to grow free cash flow by +44.9 % per year for five years (discount rate 10.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +12.2 % per year. As of Nov 8, 2026.
What discount rate (WACC) does the fair value of IPCALAB use?
Our models discount IPCA Laboratories Limited at 10.9 %: a base by market capitalisation (mid), damped by beta 0.04, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For IPCA Laboratories Limited that is +44.9 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (10.9 %) and the same formula as our fair value.
How much growth has IPCA Laboratories Limited (IPCALAB) delivered so far?
Over the past 5 years revenue at IPCA Laboratories Limited grew +12.2 % a year. The price currently implies free-cash-flow growth of +44.9 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of IPCA Laboratories Limited (IPCALAB) growing?
The median revenue growth in the sector is +6.2 % a year. That is the yardstick for the growth priced into IPCA Laboratories Limited (+44.9 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of IPCA Laboratories Limited (IPCALAB)?
The free-cash-flow yield on the price is 0.99 %: that much free cash flow IPCA Laboratories Limited produces per unit of market value. When it exceeds the discount rate of our models (10.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of IPCA Laboratories Limited (IPCALAB)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For IPCA Laboratories Limited it is ₹1,508 per share (as of Nov 8, 2026), against a price of ₹1,942. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is IPCA Laboratories Limited stock overvalued or undervalued in 2026?
As of Nov 8, 2026, IPCALAB trades above its calculated fair value: price ₹1,942, fair value ₹1,508, a gap of about −22% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of IPCALAB?
No. The price is what the market pays today (₹1,942); the fair value is what the company's own numbers justify (₹1,508). For IPCA Laboratories Limited the two are ₹433.82 per share apart. That gap is exactly why we show both numbers side by side.
How much is IPCA Laboratories Limited worth?
The market values IPCA Laboratories Limited at about ₹493B (market capitalisation, as of Nov 8, 2026). Per share that is ₹1,942; our models calculate a fair value of ₹1,508 per share.
What do the bullish and bearish scenarios say about IPCALAB?
Our models span a range for IPCA Laboratories Limited: cautious scenario ₹875.18, base ₹1,508, optimistic ₹1,960 per share (as of Nov 8, 2026, price ₹1,942). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of IPCALAB?
IPCA Laboratories Limited trades at a price-to-earnings ratio of 35.1 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹1,508 is built from several models across several years. Median P/E at fiscal year-end, 5 fiscal years (2022 to 2026), reported earnings, FY2026 ex one-offs: 43.6. Other multiples: P/B 6.1, P/S 4.7, EV/EBITDA 20.5.
How solid is the balance sheet of IPCA Laboratories Limited (IPCALAB)?
Balance-sheet figures for IPCA Laboratories Limited (as of Nov 8, 2026): return on equity 15.6%, debt of 0.01 per unit of equity. They feed the Quality Score of 63/100, which measures business quality independently of the share price.
How far is IPCALAB from its 52-week high?
IPCA Laboratories Limited trades at ₹1,942, about 3% below its 52-week high of ₹2,010 and 50% above the low of ₹1,297 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of ₹1,508 is for.
Which stocks are comparable to IPCA Laboratories Limited?
From the same area (Healthcare) we also value Merck KGaA, Takeda Pharmaceutical Company, Galderma Group, Teva Pharmaceutical Industries Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is IPCA Laboratories Limited stock attractive at the current price?
The data as of Nov 8, 2026: price ₹1,942, calculated fair value ₹1,508 (−22%), Quality Score 63/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of IPCALAB calculated?
We run IPCA Laboratories Limited through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of ₹1,508 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. IPCA Laboratories Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of IPCA Laboratories Limited (IPCALAB)?
The closing price on Nov 6, 2026 was ₹1,942. Our model-based fair value is ₹1,508, about 22% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with IPCA Laboratories Limited right now?
Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range (₹875.18 to ₹1,960) leaves room in how you read the outcome.
Where does the earnings growth of IPCA Laboratories Limited (IPCALAB) come from?
Earnings per share at IPCA Laboratories Limited grew +18.1 % a year from 2015 to 2026. Broken into its drivers: revenue per share +12.4 %, EBIT margin −0.8 %, tax rate −0.6 %, residual (interest, one-offs) +6.6 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of IPCA Laboratories Limited
How large is the market capitalisation of IPCA Laboratories Limited (IPCALAB)?
The market capitalisation of IPCA Laboratories Limited is ₹493B (≈ $5.2B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of IPCA Laboratories Limited (IPCALAB)?
The price-to-sales ratio of IPCA Laboratories Limited is 4.71 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of IPCA Laboratories Limited (IPCALAB)?
Earnings per share at IPCA Laboratories Limited are ₹55.28 (price ÷ EPS = P/E 35.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of IPCA Laboratories Limited (IPCALAB)?
The dividend yield of IPCA Laboratories Limited is 0.3% (payout 10.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of IPCA Laboratories Limited (IPCALAB)?
The net margin of IPCA Laboratories Limited is 13.4% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of IPCA Laboratories Limited (IPCALAB)?
The return on equity (ROE) of IPCA Laboratories Limited is 15.6% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of IPCA Laboratories Limited (IPCALAB)?
On an EBIT basis the return on assets of IPCA Laboratories Limited is 26.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of IPCA Laboratories Limited (IPCALAB)?
The operating margin of IPCA Laboratories Limited is 19.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at IPCA Laboratories Limited (IPCALAB)?
Revenue at IPCA Laboratories Limited is growing +14.8% versus a year earlier (3y avg +15.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at IPCA Laboratories Limited (IPCALAB)?
Earnings per share at IPCA Laboratories Limited are growing +19.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does IPCA Laboratories Limited (IPCALAB) carry?
The net debt of IPCA Laboratories Limited is ₹2.4B (fiscal year 2026, ≈ 0.5 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 8, 2026