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Last Updated on: 14 April, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Cipla Ltd

About the Company - Cipla Ltd

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
Ms. Samina HamiedExecutive Vice Chairman
Mr. Umang VohraManaging Director & Global CEO
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

Cipla Ltd. Share Price Update

Share PriceValue
Today₹1,396.40
Previous Day₹1,422.50

Basic Stock Data of Cipla Ltd

Last Updated: April 9, 2024, 9:58 pm

Market Cap 1,18,513 Cr.
Current Price 1,468
High / Low1,519/891
Stock P/E30.0
Book Value 307
Dividend Yield0.59 %
ROCE18.0 %
ROE12.8 %
Face Value 2.00

Data Source: screener.in

Competitors of Cipla Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
BDH Industries Ltd 177 Cr. 308372/12220.1 98.21.30 %20.4 %15.9 % 10.0
Bliss GVS Pharma Ltd 1,245 Cr. 119150/70.814.2 88.80.42 %11.8 %8.30 % 1.00
Lincoln Pharmaceuticals Ltd 1,200 Cr. 599755/36513.8 2730.25 %21.7 %15.5 % 10.0
Sequent Scientific Ltd 3,080 Cr. 124156/69.8 25.30.00 %3.43 %8.98 % 2.00
Ortin Laboratories Ltd 16.2 Cr. 20.030.4/16.2 12.00.00 %1.80 %0.64 % 10.0
Industry Average1,143.64 Cr234.009.6299.460.39%11.83%9.86%6.60

Cipla Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales5,1694,6065,5045,5205,4795,2605,3755,8295,8105,7396,3296,6786,604
Expenses3,9383,8104,1584,2944,2484,5114,2324,5264,4034,5664,8354,9444,856
Operating Profit1,2317961,3461,2261,2317501,1431,3021,4081,1741,4941,7341,748
OPM %24%17%24%22%22%14%21%22%24%20%24%26%26%
Other Income8760-6061917103123114-48136176-10
Interest48273038211818263234162630
Depreciation248285261253247290254299272346239290233
Profit before tax1,0215449969961,0544489751,1001,2187451,3751,5941,474
Tax %26%24%28%28%28%16%28%28%34%30%28%28%28%
Net Profit7524127107097573717067978085229981,1551,068
EPS in Rs9.285.138.868.829.034.498.519.789.926.5112.3314.0113.08

Last Updated: April 6, 2024, 9:35 am

Cipla Ltd Quarterly Chart

Cipla Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales7,0218,27910,17311,34513,79014,39415,15616,36217,13219,16021,76322,75325,350
Expenses5,3256,0658,0269,18311,31011,89812,32913,26513,92614,90717,21117,72619,201
Operating Profit1,6962,2142,1472,1632,4802,4962,8263,0973,2064,2524,5535,0276,149
OPM %24%27%21%19%18%17%19%19%19%22%21%22%24%
Other Income10324525116420820828047734426699293255
Interest3834146168207159114168197161106110107
Depreciation3123303735057541,3231,3231,3261,1751,0681,0521,1721,109
Profit before tax1,4482,0951,8801,6541,7271,2221,6692,0792,1783,2903,4934,0385,188
Tax %21%26%25%24%19%15%15%27%29%27%27%30%
Net Profit1,1441,5451,4041,2291,3831,0351,4171,4921,5002,3892,5472,8333,743
EPS in Rs14.2519.2417.2914.7116.9312.5117.5218.9619.1829.8231.1934.7145.93
Dividend Payout %14%10%12%14%12%16%17%16%21%17%16%24%

Cipla Ltd Profit & Loss Yearly Chart

Cipla Ltd Growth

Compounded Sales Growth
10 Years:11%
5 Years:8%
3 Years:10%
TTM:14%
Compounded Profit Growth
10 Years:6%
5 Years:16%
3 Years:26%
TTM:48%
Stock Price CAGR
10 Years:14%
5 Years:21%
3 Years:18%
1 Year:60%
Return on Equity
10 Years:11%
5 Years:12%
3 Years:13%
Last Year:13%

Cipla Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital161161161161161161161161161161161161161
Reserves7,4788,8589,89010,64111,35612,38314,06814,85115,60218,16520,68023,24624,664
Borrowings299671,2481,7035,2024,1134,0984,3162,8162,0141,056803961
Other Liabilities1,6821,6722,1023,1664,3314,2134,3464,4334,8434,5144,9605,0895,591
Total Liabilities9,35011,65813,40015,67021,04920,86922,67323,76223,42324,85526,85729,30031,377
Fixed Assets3,2153,6106,4966,8309,3689,4929,9509,6089,6839,5169,6839,1609,397
CWIP3713784425812,0611,6839816768259697661,093791
Investments1,2692,5327096407599731,2592,5541,4712,7102,5513,6624,272
Other Assets4,4945,1385,7537,6208,8628,72110,48310,92311,44411,66113,85715,38416,917
Total Assets9,35011,65813,40015,67021,04920,86922,67323,76223,42324,85526,85729,30031,377

Cipla Ltd Reserves and Borrowings Chart

Cipla Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1,7131,3981,5631,1731,7412,3821,4631,6913,0683,7553,3263,238
Cash from Investing Activity -965-2,063-1,265-950-4,533-1,304-834-1,688114-2,374-1,858-2,376
Cash from Financing Activity -753718-2661653,104-1,326-385-349-2,949-1,240-1,600-958
Net Cash Flow-65333388312-248243-345234141-132-97

Cipla Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days817459646265759383665765
Inventory Days247295273329273239271250267232230228
Days Payable9210292126106108142123139103108109
Cash Conversion Cycle235266239267230196204220211195180184
Working Capital Days136142126133121111129143122106103122
ROCE %20%24%19%15%13%7%9%11%12%17%17%18%

Cipla Ltd Financial Efficiency Indicators Chart

Cipla Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters36.70%36.73%36.72%36.12%36.11%33.63%33.61%33.61%33.61%33.55%33.46%33.46%
FIIs22.09%23.26%24.83%24.80%24.36%26.65%27.65%27.69%28.39%27.42%25.49%25.74%
DIIs17.96%17.17%16.24%21.03%21.52%21.99%21.33%21.47%20.87%21.83%24.05%23.90%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.21%0.21%0.21%0.21%0.21%
Public23.25%22.84%22.21%18.05%18.01%17.73%17.40%17.00%16.91%16.99%16.76%16.68%
No. of Shareholders3,59,6343,64,7964,08,4014,10,8314,51,3654,18,5844,18,9103,88,8644,04,1824,75,2934,66,5154,26,863

Cipla Ltd Shareholding Pattern Chart

No. of Cipla Ltd Shareholders

Cipla Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Flexi Cap Fund - Regular Plan167000004.792024.54
SBI Equity Hybrid Fund110000002.171333.53
SBI Nifty 50 ETF97351430.721180.19
HDFC ELSS Tax Saver Fund47000004.67569.78
Kotak Flexicap Fund - Regular Plan41000001.2497.04
ICICI Prudential Balanced Advantage Fund37987380.89460.52
Franklin India Focused Equity Fund37000004.55448.55
SBI Blue Chip Fund36970001.1448.19
Parag Parikh Flexi Cap Fund36853380.93446.77
SBI Long Term Equity Fund34035282.39412.61

Cipla Ltd ROCE Trend

Cipla Ltd EPS Trend

Cipla Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)34.7231.2029.8219.1918.97
Diluted EPS (Rs.)34.6931.1729.7919.1618.93
Cash EPS (Rs.)49.6544.7643.0233.7635.20
Book Value[Excl.RevalReserv]/Share (Rs.)293.79261.74230.46199.16190.45
Book Value[Incl.RevalReserv]/Share (Rs.)293.79261.74230.46199.16190.45
Revenue From Operations / Share (Rs.)281.89269.75237.58212.49203.08
PBDIT / Share (Rs.)68.1759.9156.0344.0344.36
PBIT / Share (Rs.)53.6546.8742.7929.4627.90
PBT / Share (Rs.)50.0343.3040.8027.0225.81
Net Profit / Share (Rs.)35.1331.7229.7819.1918.74
NP After MI And SOA / Share (Rs.)34.7131.1929.8219.1818.96
PBDIT Margin (%)24.1822.2123.5820.7221.84
PBIT Margin (%)19.0317.3718.0113.8613.73
PBT Margin (%)17.7416.0517.1712.7112.70
Net Profit Margin (%)12.4611.7612.539.029.22
NP After MI And SOA Margin (%)12.3111.5612.559.029.33
Return on Networth / Equity (%)11.9612.0713.129.8110.17
Return on Capital Employeed (%)17.7817.0416.7812.3211.13
Return On Assets (%)9.509.289.566.536.37
Long Term Debt / Equity (X)0.000.010.060.150.25
Total Debt / Equity (X)0.020.030.080.170.28
Asset Turnover Ratio (%)0.570.510.590.570.59
Current Ratio (X)3.383.002.882.663.29
Quick Ratio (X)2.371.911.861.672.24
Inventory Turnover Ratio (X)0.810.700.870.850.90
Dividend Payout Ratio (NP) (%)0.000.000.0036.4815.81
Dividend Payout Ratio (CP) (%)0.000.000.0020.738.46
Earning Retention Ratio (%)0.000.000.0063.5284.19
Cash Earning Retention Ratio (%)0.000.000.0079.2791.54
Interest Coverage Ratio (X)50.2345.4528.1217.9921.22
Interest Coverage Ratio (Post Tax) (X)28.5526.7815.948.849.96
Enterprise Value (Cr.)71957.4681343.9366141.1536211.1846675.09
EV / Net Operating Revenue (X)3.163.743.452.112.85
EV / EBITDA (X)13.0816.8314.6410.2013.06
MarketCap / Net Operating Revenue (X)3.193.783.431.992.61
Retention Ratios (%)0.000.000.0063.5184.18
Price / BV (X)3.113.943.592.162.84
Price / Net Operating Revenue (X)3.193.783.431.992.61
EarningsYield0.030.030.030.040.03

Cipla Ltd Profitability Ratios (%)

Cipla Ltd Liquidity Ratios

Cipla Ltd Liquidity Ratios (%)

Cipla Ltd Interest Coverage Ratios (%)

Cipla Ltd Valuation Ratios

Fair Value of Cipla Ltd Stock

Fair Value: 1185.84

The stock is overvalued by 19.22% compared to the current price ₹1468

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.

*Investments are subject to market risks

Strength and Weakness of Cipla Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 15.17%, which is a positive sign.
  2. The company has higher reserves (14,760.15 cr) compared to borrowings (2,255.85 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (15.23 cr) and profit (2.08 cr) over the years.
  1. The stock has a high average Working Capital Days of 124.50, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 218.92, which may not be favorable.

Should I Buy Cipla Ltd Stock Now?

  • 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: 12.46%
      • 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: 17.78% (Industry Average ROCE: 19.9%)
      • 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%: 11.96% (Industry Average ROE: 15.37%)
      • 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): 28.55
      • 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: 2.37
      • 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: 30.0 (Industry average Stock P/E: 35.5)
      • 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: 0.02
      • 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: ★★★★︎☆

FAQ

What is the latest fair value of Cipla Ltd?

The latest fair value of Cipla Ltd is 1185.84.

What is the Market Cap of Cipla Ltd?

The Market Cap of Cipla Ltd is 1,18,513 Cr..

What is the current Stock Price of Cipla Ltd as on 13 April 2024?

The current stock price of Cipla Ltd as on 13 April 2024 is 1,468.

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

In FY 2024, the High / Low of Cipla Ltd stocks is ₹1,519/891.

What is the Stock P/E of Cipla Ltd?

The Stock P/E of Cipla Ltd is 30.0.

What is the Book Value of Cipla Ltd?

The Book Value of Cipla Ltd is 307.

What is the Dividend Yield of Cipla Ltd?

The Dividend Yield of Cipla Ltd is 0.59 %.

What is the ROCE of Cipla Ltd?

The ROCE of Cipla Ltd is 18.0 %.

What is the ROE of Cipla Ltd?

The ROE of Cipla Ltd is 12.8 %.

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