Shares of Ipca Laboratories tumbled on Friday to hit their 52-week low level of Rs 815.20 during intraday trade. The stock eventually settled 3.75 per cent lower at Rs 831.20 over its previous close of Rs 863.55. The pharmaceutical company’s consolidated net profit declined 45.25 per cent to Rs 107.84 crore in Q3 FY23 against Rs 196.96 crore posted in the same period a year ago. Total expenses grew 19.01 per cent year-on-year (YoY) to Rs 1,407.55 crore in Q3 FY23. However, revenue from operations rose 8.08 per cent YoY to Rs 1,546 crore in the December 2022 quarter.
Around 42,000 shares changed hands today on BSE, which was higher than the two-week average volume of 27,000 shares. Turnover on the counter stood at Rs 3.43 crore, commanding a market capitalisation (m-cap) of Rs 21,083.99 crore.
Technical analysts suggested that support on the counter could be seen at Rs 800, followed by Rs 810 level. One analyst said that a close below Rs 850 could add selling pressure on the counter, while another opined that long-term investors should wait till the stock reclaims Rs 900. Considering today’s closing (Rs 831.20) near its one-year low level, Ipca Labs has declined 23.67 per cent from its 52-week high of Rs 1,089, touched on March 31, 2022.
Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, “Ipca Labs has been in a secular downtrend and is hovering well below all its moving averages on the daily chart. Also, the stock is placed at a 52-week low, adding to the bearish quotient in the counter. As far as levels are concerned, the immediate support is placed around Rs 800, and any breach could disrupt the charts further, and stock could plunge lower towards the Rs 750-740 odd zone. On the flip side, the sturdy resistance is placed around Rs 870-880 and until it gets decisively breached, the stock is likely to stay under pressure.”
Ganesh Dongre – Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “On the daily chart, the stock still holds the falling channel pattern with breakout placed at the Rs 920-930 level. On the weekly chart, closing below the Rs 850 level possibly could create more selling pressure on the stock. Investors should avoid this stock at the current level and wait for the stock to get on the sidelines for some time.”
Pravesh Gour, Senior Technical Analyst at Swastika Investmart, said, “The counter is in a long consolidation phase where it is forming a base at around Rs 800. The overall structure is good but long-term investors have to wait till it goes above Rs 900 and then take a position for Rs 1,100-plus levels, keeping stop loss placed at Rs 780.”
AR Ramachandran from Tips2trades said, “IPCA Labs looks bearish on the daily charts with strong resistance at Rs 860. Rs 810 is strong support and a close below this level could lead to a fall till Rs 755.”
Meanwhile, Indian equity benchmarks fell sharply today, dragged by banks, financials, technology and pharma stocks. The 30-share BSE Sensex pack fell 317 points or 0.52 per cent to settle at 61,003; while the broader NSE Nifty index moved 92 points or 0.51 per cent lower to close at 17,944.
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