IGC Pharma (IGC) AI Stock Analysis

• Market Cap: $24.37M
• Dividend Yield: N/A
• Average Volume (3M): 384.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: 1.64%
• EPS Growth: 50.63%
• Country: US
• Employees: 67
• Sector: Healthcare
• Sector Strength: 66
• Industry: Conglomerates
• EPS (TTM): -0.12
• Shares Outstanding: 79,685,165
• 10 Day Avg. Volume: 399,464
• 30 Day Avg. Volume: 384,336
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 20.82
• Price to Cash Flow (P/CF): -4.90
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.25
• Price Target Upside: 1270.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

IGC Pharma's overall stock score reflects significant financial difficulties, including declining revenues, substantial losses, and cash flow challenges. While the technical indicators are mixed, the negative P/E ratio highlights valuation concerns. The company's financial instability and operational inefficiencies pose substantial risks, necessitating strategic improvements for future sustainability.

Positive Factors

Clinical Trials

IGC reported positive interim results from its Phase 2 trial for IGC-AD1, showing a significant reduction in agitation compared to placebo in patients with Alzheimer's disease.

Market Potential

The large market potential for Alzheimer's treatments presents high rewards despite the risks, given the growing number of Americans affected by the disease.

Strategic Expansion

The company's strategic expansion into the $75 billion wellness industry with the launch of the Holiby brand offers new growth opportunities.

Negative Factors

Investment Risks

The current valuation is considered attractive, with a raised 12-month price target to $4.00, indicating significant upside potential from the current share price.

Market Risks

The large market potential for Alzheimer's disease treatment, due to the absence of a known cure and a growing number of patients, presents high rewards for the risks involved.

IGC Pharma Business Overview & Revenue Model

Company Description

IGC Pharma (IGC) is a biotechnology company focused on the development and commercialization of cannabinoid-based therapies for treating various conditions, including Alzheimer's disease, chronic pain, and other health disorders. The company operates within the pharmaceutical and healthcare sectors, leveraging its expertise in cannabinoid research and development to create innovative therapeutic solutions.

How the Company Makes Money

IGC Pharma generates revenue primarily through the commercialization of its pharmaceutical products, which are developed based on cannabinoid research. The company invests in clinical trials and research to bring its products to market, targeting unmet medical needs. Additionally, IGC may engage in partnerships with other pharmaceutical companies, research institutions, or healthcare providers to enhance its product offerings and expand its market reach, contributing to its revenue streams.

IGC Pharma Financial Statement Overview

Summary

IGC Pharma faces financial challenges with declining revenues and significant losses. The balance sheet shows moderate leverage but a weakening financial position with declining assets. Cash flow issues are critical, with substantial outflows and negative free cash flow, highlighting the need for strategic improvements in operational efficiency.

Income Statement

IGC Pharma has faced significant challenges in maintaining revenue growth and profitability. The TTM (Trailing-Twelve-Months) shows a net loss with a declining revenue trend, as evidenced by a revenue decrease from $1,345,000 to $1,236,000. Margins are under pressure with a negative Net Profit Margin and EBIT Margin. While there is a gross profit, the high operating losses overshadow it, indicating inefficiencies or high expenditure relative to revenue.

Balance Sheet

The company's balance sheet shows moderate leverage with a debt-to-equity ratio that remains manageable. The equity ratio is relatively healthy, but there has been a noticeable decrease in stockholders' equity over recent periods. The declining total assets and cash position also suggest a weakening financial position, though the company maintains positive net debt, indicating more cash and equivalents than debt.

Cash Flow

IGC Pharma's cash flow statement indicates substantial cash outflows from operations, with negative free cash flow trends. The Operating Cash Flow to Net Income ratio is unfavorable, suggesting operational inefficiencies or high costs. Despite raising financing cash flows, the company struggles to generate positive cash from its core activities, which could hinder future operations without improvement.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.24M	1.34M	911.00K	397.00K	898.00K	4.07M
	Gross Profit
636.00K	733.00K	442.00K	194.00K	113.00K	115.00K
	EBIT
-8.20M	-9.80M	-11.57M	-15.43M	-8.72M	-6.86M
	EBITDA
-7.71M	-9.16M	-10.91M	-14.78M	-8.25M	-6.72M
	Net Income Common Stockholders
-8.81M	-13.00M	-11.44M	-14.60M	-8.98M	-8.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
470.00K	1.20M	3.35M	10.46M	14.63M	12.34M
	Total Assets
9.08M	9.90M	17.18M	26.83M	35.87M	28.98M
	Total Debt
146.00K	345.00K	481.00K	488.00K	985.00K	535.00K
	Net Debt
-324.00K	-853.00K	-2.71M	-9.97M	-13.56M	-6.72M
	Total Liabilities
2.82M	2.58M	2.27M	2.94M	3.06M	2.45M
	Stockholders Equity
6.26M	7.32M	14.91M	23.89M	32.80M	26.54M
Cash Flow		Free Cash Flow
-5.01M	-5.71M	-7.67M	-8.20M	-12.39M	-13.14M
	Operating Cash Flow
-4.59M	-5.20M	-7.05M	-7.46M	-10.80M	-8.68M
	Investing Cash Flow
-623.00K	-317.00K	-235.00K	-742.00K	3.39M	-9.55M
	Financing Cash Flow
4.31M	3.52M	100.00K	4.14M	14.69M	-59.00K

IGC Pharma Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IGC, the sentiment is Negative. The current price of 0.31 is above the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.31, and below the 200-day MA of 0.37, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.74 is Neutral, neither overbought nor oversold. The STOCH value of 17.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IGC.

IGC Pharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRON	68 Neutral	$1.03B	17.45	3.80%	―	35.87%	―
SNDL	59 Neutral	$409.11M	―	-8.00%	―	-2.89%	47.06%
Sector *	49 Neutral	$6.88B	0.82	-52.97%	2.48%	20.92%	1.17%
ACB	47 Neutral	$355.10M	27.83	4.78%	―	16.39%	-98.10%
IGC	45 Neutral	$24.37M	―	-115.06%	―	1.64%	50.63%
TLRY	44 Neutral	$639.76M	―	-7.28%	―	18.38%	86.59%
WEED	32 Underperform	C$269.83M	―	-84.50%	―	-16.27%	76.17%