IGC Pharma (IGC) AI Stock Analysis

• Market Cap: $36.70M
• Dividend Yield: N/A
• Average Volume (3M): 718.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: 24.95%
• EPS Growth: 61.65%
• Country: US
• Employees: 67
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 91,959,114
• 10 Day Avg. Volume: 837,608
• 30 Day Avg. Volume: 718,535
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 17.25
• Enterprise Value/Gross Profit: 37.52
• Enterprise Value/Ebitda: -3.60
• 1Y Price Target: $4.50
• Price Target Upside: 1025.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: $0.50 ▲(25.00% Upside)

The overall stock score is primarily impacted by the weak financial performance, which is a significant concern. Despite this, the stock shows positive technical momentum and promising corporate developments in Alzheimer's research, which provide some optimism. However, the negative valuation metrics and lack of profitability weigh heavily on the overall score.

Positive Factors

Alzheimer's Drug Development

The expansion of the Phase 2 trial for IGC-AD1 indicates progress in Alzheimer's research, potentially leading to a breakthrough in treating agitation in Alzheimer's patients, a significant unmet medical need.

Revenue Growth

The increase in revenue from $272,000 to $328,000 reflects positive growth, suggesting that IGC Pharma is expanding its market presence and product adoption, which is crucial for long-term sustainability.

Innovative AI Tool

The development of MINT-AD, an AI-driven tool, positions IGC Pharma at the forefront of innovation in Alzheimer's care, enhancing its competitive edge and potential market impact.

Negative Factors

Profitability Challenges

The substantial negative net profit margin indicates severe profitability issues, which could hinder the company's ability to sustain operations and invest in future growth.

Cash Flow Issues

Persistent negative cash flows highlight cash management challenges, potentially limiting IGC Pharma's ability to fund R&D and operational activities, impacting long-term viability.

Negative Return on Equity

A negative return on equity suggests inefficiencies in generating returns from shareholders' investments, which could deter future investment and affect financial stability.

IGC Pharma Business Overview & Revenue Model

Company Description

IGC Pharma, Inc. is a clinical-stage pharmaceutical company that is focused on Alzheimer's disease, developing innovative solutions to address this devastating illness. It has two investigational drug assets targeting Alzheimer's disease: IGC-AD1, which is in a Phase 2 clinical trial as a treatment for agitation in dementia due to Alzheimer's and TGR-63 that is in pre-clinical development. In addition to its drug development pipeline, IGC Pharma seeks to leverage artificial intelligence (AI) for Alzheimer's research. The company was founded by Ram Mukunda on April 29, 2005 and is headquartered in Potomac, MD.

How the Company Makes Money

IGC Pharma generates revenue through several key streams, primarily by developing and commercializing its proprietary cannabis-derived pharmaceuticals. The company's revenue model includes income from product sales, partnerships with larger pharmaceutical firms for distribution and co-development of its therapies, and potential royalties from licensing agreements. Additionally, IGC may benefit from grants and funding for research and development in innovative drug formulations. Significant partnerships with research institutions and collaborations with industry leaders further enhance its revenue potential by facilitating access to broader markets and improving product validation.

IGC Pharma Financial Statement Overview

Summary

IGC Pharma is experiencing financial difficulties across all verticals. While there is some revenue growth, the company is facing significant profitability and cash flow challenges. The low leverage is a positive aspect, but the negative return on equity and substantial losses are major concerns. Overall, the financial health of IGC Pharma is weak, with critical areas needing improvement.

Income Statement

IGC Pharma's income statement shows a modest revenue growth rate of 4.41% TTM, but the company is struggling with profitability. The gross profit margin is reasonable at 48.70%, yet the net profit margin is significantly negative at -560.27%, indicating substantial losses. The EBIT and EBITDA margins are also deeply negative, reflecting operational challenges. Overall, while there is some revenue growth, the company faces severe profitability issues.

Balance Sheet

The balance sheet of IGC Pharma indicates a low debt-to-equity ratio of 0.0376, suggesting minimal leverage, which is a positive aspect. However, the return on equity is negative at -102.29%, highlighting the company's inability to generate profits from shareholders' equity. The equity ratio is not provided, but the low leverage is a strength amidst the overall weak financial performance.

Cash Flow

IGC Pharma's cash flow statement reveals negative operating and free cash flows, with a free cash flow growth rate of -7.00% TTM. The operating cash flow to net income ratio is negative, indicating cash flow challenges. Although the free cash flow to net income ratio is slightly positive at 1.05, the overall cash flow situation is concerning, with persistent cash outflows.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.33M	1.27M	1.34M	911.00K	397.00K	898.00K
Gross Profit	610.00K	619.00K	733.00K	442.00K	194.00K	113.00K
EBITDA	-6.36M	-6.83M	-9.16M	-10.91M	-14.78M	-8.25M
Net Income	-6.34M	-7.12M	-13.00M	-11.51M	-15.02M	-8.81M
Balance Sheet
Total Assets	7.94M	8.75M	9.90M	17.18M	26.83M	35.87M
Cash, Cash Equivalents and Short-Term Investments	454.00K	405.00K	1.20M	3.35M	10.46M	14.63M
Total Debt	202.00K	238.00K	345.00K	481.00K	488.00K	985.00K
Total Liabilities	1.86M	2.42M	2.58M	2.27M	2.94M	3.06M
Stockholders Equity	6.08M	6.33M	7.32M	14.91M	23.89M	32.80M
Cash Flow
Free Cash Flow	-4.70M	-5.28M	-5.71M	-7.67M	-8.20M	-12.39M
Operating Cash Flow	-4.45M	-4.79M	-5.20M	-7.05M	-7.46M	-10.80M
Investing Cash Flow	269.00K	-442.00K	-317.00K	-235.00K	-742.00K	3.39M
Financing Cash Flow	2.79M	4.45M	3.52M	100.00K	4.14M	14.69M

IGC Pharma Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IGC, the sentiment is Neutral. The current price of 0.4 is below the 20-day moving average (MA) of 0.41, above the 50-day MA of 0.39, and above the 200-day MA of 0.34, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.63 is Neutral, neither overbought nor oversold. The STOCH value of 47.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IGC.

IGC Pharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPLP	71 Outperform	$813.90M	4.30	18.71%	―	5.04%	7.61%
RCMT	67 Neutral	$171.26M	13.09	41.02%	―	11.01%	-15.44%
NNBR	53 Neutral	$91.54M	―	-21.54%	―	-9.86%	1.22%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IGC	51 Neutral	$36.70M	―	-90.87%	―	24.95%	61.65%
TUSK	49 Neutral	$104.58M	―	-27.32%	―	-19.00%	48.70%
FIP	47 Neutral	$581.19M	―	-9.32%	1.78%	16.07%	30.39%

IGC Pharma Corporate Events

IGC Pharma Highlights Alzheimer’s Research Progress

On June 17, 2025, IGC Pharma released an updated corporate presentation highlighting its clinical study advancements, which will be used in upcoming conferences and meetings with stakeholders. The presentation underscores the company’s progress in Alzheimer’s research, particularly with its IGC-AD1 drug candidate, which has undergone rigorous preclinical and regulatory reviews, showing promising results in reducing Alzheimer’s symptoms and meeting FDA standards.