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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500087 | NSE: CIPLA

Cipla Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:25 pm

Market Cap 1,20,037 Cr.
Current Price 1,486
High / Low1,702/1,178
Stock P/E26.1
Book Value 351
Dividend Yield0.87 %
ROCE22.8 %
ROE16.8 %
Face Value 2.00
PEG Ratio2.12

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Cipla Ltd

Competitors of Cipla Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Themis Biosyn Ltd 3,399 Cr. 312390/10864.5 20.50.21 %45.0 %33.8 % 1.00
Gujarat Terce Laboratories Ltd 58.6 Cr. 79.094.9/25.822.5 11.90.00 %9.72 %3.44 % 10.0
Gujarat Inject (Kerala) Ltd 28.0 Cr. 19.119.5/8.3536.3 6.640.00 %4.06 %3.33 % 10.0
Godavari Drugs Ltd 86.2 Cr. 114155/87.012.9 55.40.00 %12.7 %15.5 % 10.0
Glenmark Life Sciences Ltd 12,800 Cr. 1,0461,335/62030.2 2072.15 %28.1 %21.1 % 2.00
Industry Average19,451.65 Cr1,190.0155.13184.880.32%16.40%16.92%6.61

All Competitor Stocks of Cipla Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales5,5045,5205,4795,2605,3755,8295,8105,7396,3296,6786,6046,1636,694
Expenses4,1584,2944,2484,5114,2324,5264,4034,5664,8354,9444,8564,8474,978
Operating Profit1,3461,2261,2317501,1431,3021,4081,1741,4941,7341,7481,3161,716
OPM %24%22%22%14%21%22%24%20%24%26%26%21%26%
Other Income-6061917103123114-48136176-10249160
Interest30382118182632341626301818
Depreciation261253247290254299272346239290233288247
Profit before tax9969961,0544489751,1001,2187451,3751,5941,4741,2591,611
Tax %28%28%28%16%28%28%34%30%28%28%28%26%27%
Net Profit7107097573717067978085229981,1551,0689321,175
EPS in Rs8.868.829.034.498.519.789.926.5112.3314.0113.0811.6314.58

Last Updated: September 12, 2024, 11:46 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 12, 2024, 11:46 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales8,27910,17311,34513,79014,39415,15616,36217,13219,16021,76322,75325,77426,139
Expenses6,0658,0269,18311,31011,89812,32913,26513,92614,90717,21117,72619,48319,626
Operating Profit2,2142,1472,1632,4802,4962,8263,0973,2064,2524,5535,0276,2916,513
OPM %27%21%19%18%17%19%19%19%22%21%22%24%25%
Other Income24525116420820828047734426699293552576
Interest341461682071591141681971611061109091
Depreciation3303735057541,3231,3231,3261,1751,0681,0521,1721,0511,058
Profit before tax2,0951,8801,6541,7271,2221,6692,0792,1783,2903,4934,0385,7025,939
Tax %26%25%24%19%15%15%27%29%27%27%30%27%
Net Profit1,5451,4041,2291,3831,0351,4171,4921,5002,3892,5472,8334,1544,331
EPS in Rs19.2417.2914.7116.9312.5117.5218.9619.1829.8231.1934.7151.0553.30
Dividend Payout %10%12%14%12%16%17%16%21%17%16%24%25%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-9.13%-12.46%12.53%-25.16%36.91%5.29%0.54%59.27%6.61%11.23%46.63%
Change in YoY Net Profit Growth (%)0.00%-3.34%24.99%-37.69%62.07%-31.62%-4.76%58.73%-52.65%4.62%35.40%

Cipla Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:10%
5 Years:10%
3 Years:10%
TTM:8%
Compounded Profit Growth
10 Years:12%
5 Years:25%
3 Years:21%
TTM:30%
Stock Price CAGR
10 Years:9%
5 Years:25%
3 Years:18%
1 Year:24%
Return on Equity
10 Years:12%
5 Years:14%
3 Years:14%
Last Year:17%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:31 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital161161161161161161161161161161161161162
Reserves8,8589,89010,64111,35612,38314,06814,85115,60218,16520,68023,24626,54528,201
Borrowings9671,2481,7035,2024,1134,0984,3162,8162,0141,056803559461
Other Liabilities1,6722,1023,1664,3314,2134,3464,4334,8434,5144,9605,0895,2675,832
Total Liabilities11,65813,40015,67021,04920,86922,67323,76223,42324,85526,85729,30032,53334,655
Fixed Assets3,6106,4966,8309,3689,4929,9509,6089,6839,5169,6839,1609,60710,342
CWIP3784425812,0611,6839816768259697661,0931,1531,097
Investments2,5327096407599731,2592,5541,4712,7102,5513,6625,4494,995
Other Assets5,1385,7537,6208,8628,72110,48310,92311,44411,66113,85715,38416,32318,221
Total Assets11,65813,40015,67021,04920,86922,67323,76223,42324,85526,85729,30032,53334,655

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1,3981,5631,1731,7412,3821,4631,6913,0683,7553,3263,2384,134
Cash from Investing Activity +-2,063-1,265-950-4,533-1,304-834-1,688114-2,374-1,858-2,376-2,982
Cash from Financing Activity +718-2661653,104-1,326-385-349-2,949-1,240-1,600-958-1,200
Net Cash Flow5333388312-248243-345234141-132-97-49

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-965.001.001.00-3.00-2.00-2.00-1.001.002.003.00-798.00-553.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days745964626575938366576568
Inventory Days295273329273239271250267232230228217
Days Payable10292126106108142123139103108112102
Cash Conversion Cycle266239267230196204220211195180181182
Working Capital Days142126133121111129143122106103122125
ROCE %24%19%15%13%7%9%11%12%17%17%18%23%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters36.12%36.11%33.63%33.61%33.61%33.61%33.55%33.46%33.46%33.46%33.46%30.91%
FIIs24.80%24.36%26.65%27.65%27.69%28.39%27.42%25.49%25.74%25.73%25.82%27.82%
DIIs21.03%21.52%21.99%21.33%21.47%20.87%21.83%24.05%23.90%24.05%24.15%24.66%
Government0.00%0.00%0.00%0.00%0.21%0.21%0.21%0.21%0.21%0.21%0.21%0.21%
Public18.05%18.01%17.73%17.40%17.00%16.91%16.99%16.76%16.68%16.53%16.36%16.40%
No. of Shareholders4,10,8314,51,3654,18,5844,18,9103,88,8644,04,1824,75,2934,66,5154,26,8634,25,7314,36,1544,63,569

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Flexi Cap Fund - Regular Plan19,200,0004.822965.061,386,0692024-11-231285.21%
HDFC ELSS Tax Saver Fund5,400,0005.17833.921,386,0692024-11-23289.59%
HDFC Focused 30 Fund - Regular Plan4,000,0004.48617.721,386,0692024-11-23188.59%
SBI Contra Fund3,836,9851.57592.551,386,0692024-11-23176.82%
SBI Long Term Equity Fund3,403,5281.91525.611,386,0692024-11-23145.55%
HDFC Top 100 Fund - Regular Plan2,266,2820.94349.981,386,0692024-11-2363.5%
Kotak Equity Arbitrage Fund - Regular Plan2,083,2500.62321.721,386,0692024-11-2350.3%
HDFC Balanced Advantage Fund - Regular Plan1,733,2430.28267.661,386,0692024-11-2325.05%
Kotak Equity Opportunities Fund - Regular Plan1,500,0000.92231.651,386,0692024-11-238.22%
DSP Healthcare Fund1,386,0697.77214.051,386,0692024-11-230%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)51.0534.7231.2029.8219.19
Diluted EPS (Rs.)51.0134.6931.1729.7919.16
Cash EPS (Rs.)64.4949.6544.7643.0233.76
Book Value[Excl.RevalReserv]/Share (Rs.)331.98293.79261.74230.46199.16
Book Value[Incl.RevalReserv]/Share (Rs.)331.98293.79261.74230.46199.16
Revenue From Operations / Share (Rs.)319.24281.89269.75237.58212.49
PBDIT / Share (Rs.)87.1768.1759.9156.0344.03
PBIT / Share (Rs.)74.1553.6546.8742.7929.46
PBT / Share (Rs.)70.6250.0343.3040.8027.02
Net Profit / Share (Rs.)51.4735.1331.7229.7819.19
NP After MI And SOA / Share (Rs.)51.0534.7131.1929.8219.18
PBDIT Margin (%)27.3024.1822.2123.5820.72
PBIT Margin (%)23.2219.0317.3718.0113.86
PBT Margin (%)22.1217.7416.0517.1712.71
Net Profit Margin (%)16.1212.4611.7612.539.02
NP After MI And SOA Margin (%)15.9912.3111.5612.559.02
Return on Networth / Equity (%)15.4311.9612.0713.129.81
Return on Capital Employeed (%)21.7917.7817.0416.7812.32
Return On Assets (%)12.599.509.289.566.53
Long Term Debt / Equity (X)0.000.000.010.060.15
Total Debt / Equity (X)0.010.020.030.080.17
Asset Turnover Ratio (%)0.820.570.510.590.57
Current Ratio (X)3.713.383.002.882.66
Quick Ratio (X)2.712.371.911.861.67
Inventory Turnover Ratio (X)1.000.810.700.870.85
Dividend Payout Ratio (NP) (%)16.640.000.000.0036.48
Dividend Payout Ratio (CP) (%)13.260.000.000.0020.73
Earning Retention Ratio (%)83.360.000.000.0063.52
Cash Earning Retention Ratio (%)86.740.000.000.0079.27
Interest Coverage Ratio (X)78.3050.2345.4528.1217.99
Interest Coverage Ratio (Post Tax) (X)49.4028.5526.7815.948.84
Enterprise Value (Cr.)120138.5271957.4681343.9366141.1536211.18
EV / Net Operating Revenue (X)4.663.163.743.452.11
EV / EBITDA (X)17.0713.0816.8314.6410.20
MarketCap / Net Operating Revenue (X)4.683.193.783.431.99
Retention Ratios (%)83.350.000.000.0063.51
Price / BV (X)4.523.113.943.592.16
Price / Net Operating Revenue (X)4.683.193.783.431.99
EarningsYield0.030.030.030.030.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Cipla Ltd as of November 24, 2024 is: 1,552.45

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 24, 2024, Cipla Ltd is Undervalued by 4.47% compared to the current share price 1,486.00

Intrinsic Value of Cipla Ltd as of November 24, 2024 is: 1,743.66

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 24, 2024, Cipla Ltd is Undervalued by 17.34% compared to the current share price 1,486.00

Last 5 Year EPS CAGR: 12.32%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.42%, which is a positive sign.
  2. The company has higher reserves (16,498.92 cr) compared to borrowings (2,258.15 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (16.69 cr) and profit (2.38 cr) over the years.
  1. The stock has a high average Working Capital Days of 123.58, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 214.25, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Cipla Ltd:
    1. Net Profit Margin: 16.12%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 21.79% (Industry Average ROCE: 16.4%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 15.43% (Industry Average ROE: 16.92%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 49.4
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.71
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 26.1 (Industry average Stock P/E: 55.13)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.01
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Cipla Ltd. is a Public Limited Listed company incorporated on 17/08/1935 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24239MH1935PLC002380 and registration number is 002380. Currently Company is involved in the business activities of Manufacture of pharmaceuticals, medicinal chemical and botanical products. Company’s Total Operating Revenue is Rs. 13091.79 Cr. and Equity Capital is Rs. 161.36 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsCipla House, Peninsula Business Park, Mumbai Maharashtra 400013cosecretary@cipla.com
http://www.cipla.com
Management
NamePosition Held
Dr. Y K HamiedChairman
Mr. M K HamiedVice Chairman
Mr. Umang VohraManaging Director & Global CEO
Ms. Samina HamiedNon Exe.Non Ind.Director
Mr. S RadhakrishnanNon Exe.Non Ind.Director
Mr. Ashok SinhaIndependent Director
Mr. P R RameshIndependent Director
Mr. Robert StewartIndependent Director
Dr. Mandar VaidyaIndependent Director
Mr. Adil ZainulbhaiIndependent Director
Ms. Punita LalIndependent Director
Dr. Balram BhargavaIndependent Director

FAQ

What is the latest intrinsic value of Cipla Ltd?

The latest intrinsic value of Cipla Ltd as on 23 November 2024 is ₹1552.45, which is 4.47% higher than the current market price of ₹1,486.00.

What is the Market Cap of Cipla Ltd?

The Market Cap of Cipla Ltd is 1,20,037 Cr..

What is the current Stock Price of Cipla Ltd as on 23 November 2024?

The current stock price of Cipla Ltd as on 23 November 2024 is 1,486.

What is the High / Low of Cipla Ltd stocks in FY 2024?

In FY 2024, the High / Low of Cipla Ltd stocks is 1,702/1,178.

What is the Stock P/E of Cipla Ltd?

The Stock P/E of Cipla Ltd is 26.1.

What is the Book Value of Cipla Ltd?

The Book Value of Cipla Ltd is 351.

What is the Dividend Yield of Cipla Ltd?

The Dividend Yield of Cipla Ltd is 0.87 %.

What is the ROCE of Cipla Ltd?

The ROCE of Cipla Ltd is 22.8 %.

What is the ROE of Cipla Ltd?

The ROE of Cipla Ltd is 16.8 %.

What is the Face Value of Cipla Ltd?

The Face Value of Cipla Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Cipla Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE