Ipca Laboratories Limited (IPCALAB.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-60.6%

₹769.53

vs ₹1,953.00 price

Levered DCF

₹1,628.45

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

12.14

Safe zone

Rating

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	35.6×	47.83×	57.54×	43.61×	30.58×	21.15×	29.02×	27.62×
P/B	5.04×	5.08×	4.97×	3.52×	4.92×	5.13×	4.85×	3.94×
P/S	4.21×	3.95×	4.09×	3.29×	4.64×	4.45×	3.79×	3.26×
EV / EBITDA	20.83×	21.52×	25.38×	21.54×	21.35×	15.89×	18.94×	17.47×
Gross margin	64.1%	65.5%	63.0%	59.6%	62.1%	65.0%	61.6%	64.0%
Operating margin	24.2%	41.0%	38.4%	36.3%	39.3%	43.4%	38.9%	39.6%
Net margin	11.8%	8.3%	7.1%	7.5%	15.2%	21.0%	13.0%	11.8%
Current ratio	2.76×	2.5×	2.35×	2.87×	3.04×	2.96×	2.15×	2.17×
Debt / equity	0.1×	0.2×	0.23×	0.25×	0.15×	0.06×	0.14×	0.15×
Interest coverage	30.7×	41.74×	22.77×	49.45×	224.5×	209.19×	91.39×	72.84×
Dividend yield	0.1%	0.3%	0.2%	0.5%	0.4%	0.4%	0.7%	0.1%
Payout ratio	4.6%	13.8%	9.3%	21.5%	11.5%	8.9%	20.1%	3.5%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	14.2%	10.6%	8.6%	8.1%	16.1%	24.2%	16.7%	14.2%
Return on invested capital	16.5%	25.1%	19.4%	19.4%	27.9%	37.7%	34.2%	32.1%
Return on assets	9.2%	6.3%	4.9%	5.5%	11.6%	18.8%	11.5%	9.8%
Free cash flow yield	1.2%	1.4%	1.7%	1.5%	1.4%	3.0%	1.5%	2.6%
Earnings yield	2.8%	2.1%	1.7%	2.3%	3.3%	4.7%	3.4%	3.6%
Enterprise value	₹408.6B	₹364.8B	₹327.2B	₹207.8B	₹275.7B	₹242.1B	₹180.5B	₹124.7B
Net debt / EBITDA	0.12×	0.71×	0.95×	0.23×	0.41×	0.07×	0.46×	0.26×
Cash conversion cycle (days)	267	281	297	234	272	234	219	213