Ipca stock’s valuation seem reasonable relative to its earnings potential over the next few years. They trade at around 30 times its FY27 estimated earnings
Improvement in Unichem, the integration of which has weighed on profitability lately, could be a key factor driving this margin expansion. The management expects Unichem’s Ebitda margin to reach 12-13% in FY27, from about 8% currently. Unichem’s manufacturing facility in Ireland has been closed, and production has been shifted to India – a move the management estimates will generate annual savings of ₹40-50 crore. Plus, a large part of the integration, technology transfer and restructuring costs have already been incurred. In Q4FY26 alone, Unichem incurred an additional ₹10-12 crore of R&D and technology-transfer expenses. As these costs normalize, earnings should improve.
