ipca labs stock hold or sell, what are the short term price targets of Ipca labs?

 What should investors do in Ipca Labs Stock ?

Ipca Laboratories is one such stock which has given multibagger returns in last 5 years. From the year 2018 to 2023, the company has given 3 times return to its share holders. Ipca Laboratories stock has been witnessing profit booking since last few weeks. In such a situation, the management of Ipca Laboratories has made another announcement yesterday in which they have acquired 33.38% stake in Unichem Laboratories for Rs 1,034 crore. In such a situation, only one question is going on in the hearts and minds of the shareholders that whether they should hold and sell the shares of Ipca Laboratories? Is taking 33.38% stake of Ipca Laboratories in Unichem Laboratories a right or wrong decision? Let us understand how Ipca Lab's stock may move in the coming weeks. Before this, let us understand that what Asia is going to be on the blank sheet of Ipca Lab Company by making an acquisition deal with Unichem Lab.

Ipca Labs  to do acquisition of stake in Unichem Lab decision is right or wrong :

Ipca Lab's deal with Unichem Labs amounting to 2,35,01,440 fully paid-up equity shares at Rs 440 per equity share can be considered a very bad decision, that too in such an environment, the biggest life of the pharma sector Companies are avoiding doing any big deals in USA at this time, if the balance sheet of Ipca Lab is understood, then 580 crore cash is visible in the balance sheet, against which the acquisitions of Rs 1,034 crore are going out of everyone's understanding. . If the management of Ipca Labs wanted to make some deal, then a small transaction could have been made and the balance sheet could have been maintained, but why the management took such a decision, it is not understood by any expert. Ipca Lab's share was already valuable and after this deal, the shares will become very expensive. Not only this, the management of Ipca Labs company has also deeded to offer an open offer to Unichem Laboratories's public shareholders in order to purchase from them up to 26% of the fully diluted outstanding equity share capital for a price of Rs 440 per share aggregating to Rs 805.44 crore.

On the other hand, the management of Unichem Lab was very happy with this transaction when they gave their point of view on business news channels. In such a situation, we can say that the management of Ipca Lab has solved all the problems of Unichem Lab company and taken its own initiative.

Short term Targets of IPCA labs:

On the  technical charts,  Ipca lab stock was only in to the profit booking mood but after the announcement of the unichem lab acquisition we may see selling pressure on IPCA lab stock for short term.

Sell IPCA labs Share if:

If IPCA lab stock gives gap down open and try to recover from lower levels then try to short this stock on every rise with strict stoploss of rs830rs or rs839rs, we may see downside in IPCA labs stock which can drag this stock upto the price levels of 790rs, 765rs to 740rs around 740rs price level we may see bounce back in IPCA labs stock but try to use that bounce back as exit opportunity from this stock. If IPCA lab stock gives close below 740rs price level then we may see another sharp faull in IPCA lab stock price which can drag  this stock to the price levels of 710rs, 680rs, 660rs, 640rs to 610rs price levels.

Buy IPCA Labs Stock if:

In any case IPCA lab stock  shows some upside then it is better to exit from this stock. If traders wants to buy this stock and trade in IPCA labs stock then it is better to plaf safe and if stock gives closing above 840rs price levels then we may see some upside which can take this stock up to 880rs to 910rs  but it looks bit difficult. So it is better to stay away from this stock for short to medium term.

 What long term investors should do in IPCA labs stock?

It is better to take exit from IPCA labs stock at current price levels and invest into good pharma sector companies. IPCA lab stock is already overvalued and trading at very higher valuations. After Unichem lab acquisition debit on IPCA Labs Company will increase which can creat problem for the company in the longer term if company management will not be able to manage this heavy debt on books.  We will not be surprise if IPCA labs stock will start trading at Year 2020 or 2019 year valuations in the coming months.