Cipla Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹1,27,169 crore, PE ratio of 28.7, debt-to-equity ratio of 0.02, and return on equity of 16.8% These figures reflect the company’s financial health and current market valuation.
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Cipla Ltd Overview
Cipla Ltd is a leading Indian pharmaceutical company, established in 1935. It is renowned for producing affordable medicines across various therapeutic segments, including respiratory, cardiovascular, and anti-infectives. Cipla operates globally, with a strong presence in over 80 countries, committed to providing high-quality healthcare solutions.
The company has a market capitalization of ₹1,27,169 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 26.6% below its 52-week high and 1.58% above its 52-week low.
Cipla Financial Results
Cipla Ltd’s financial results for FY24 demonstrate a significant improvement, with sales reaching ₹25,774 crores, up from ₹21,763 crores in FY22. Net profit also increased to ₹4,154 crores from ₹2,547 crores.
- Revenue Trend: Cipla Ltd’s revenue grew consistently, with sales rising from ₹21,763 crore in FY22 to ₹22,753 crore in FY23, and further to ₹25,774 crore in FY24, reflecting robust growth.
- Equity and Liabilities: The company’s equity and liabilities structure showcases financial stability and strategic management. It effectively balances equity financing and debt to ensure sustainability and capital flexibility for growth initiatives.
- Profitability: Cipla’s operating profit rose from ₹4,553 crore in FY22 to ₹5,027 crore in FY23, and further to ₹6,291 crore in FY24. Net profit increased from ₹2,547 crore in FY22 to ₹2,833 crore in FY23, reaching ₹4,154 crore in FY24.
- Earnings Per Share (EPS): EPS saw a notable increase from ₹31.2 in FY22 to ₹34.72 in FY23, and further to ₹51.05 in FY24, indicating strong earnings growth over the three years.
- Return on Net Worth (RoNW): Cipla’s RoNW reflects improved returns, with net profit rising from ₹2,547 crore in FY22 to ₹2,833 crore in FY23 and reaching ₹4,154 crore in FY24, benefiting equity investors.
- Financial Position: Cipla’s EBITDA improved from ₹4,834 crore in FY22 to ₹5,502 crore in FY23, and further to ₹7,038 crore in FY24, demonstrating strengthened financial health and operational efficiency.
Cipla Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 25,774 | 22,753 | 21,763 |
| Expenses | 19,483 | 17,726 | 17,211 |
| Operating Profit | 6,291 | 5,027 | 4,553 |
| OPM % | 24 | 22 | 21 |
| Other Income | 551.75 | 293.03 | 98.79 |
| EBITDA | 7,038 | 5,502 | 4,834 |
| Interest | 89.88 | 109.54 | 106.35 |
| Depreciation | 1,051 | 1,172 | 1,052 |
| Profit Before Tax | 5,702 | 4,038 | 3,493 |
| Tax % | 27.12 | 29.79 | 26.73 |
| Net Profit | 4,154 | 2,833 | 2,547 |
| EPS | 51.05 | 34.72 | 31.2 |
| Dividend Payout % | 25.47 | 24.48 | 16.03 |
*All values in ₹ Crores
Cipla Company Metrics
Cipla Ltd’s financial overview shows a market cap of ₹1,27,169 crore and a current price of ₹1,575. The stock has a P/E ratio of 28.7, a dividend yield of 0.83%, and strong ROCE and ROE at 22.8% and 16.8%, respectively. The company demonstrates solid profitability with a net profit of ₹4,331 crore and an EPS of ₹53.3.
- Market Cap: Cipla’s market capitalization stands at ₹1,27,169 crore, indicating its significant size and prominence in the pharmaceutical industry.
- Book Value: The book value of Cipla’s shares is ₹331, representing the company’s net asset value per share. This figure provides insight into the underlying value of the company’s equity.
- Face Value: Cipla’s face value is ₹2.00, which is the nominal value assigned to each share. It serves as a baseline for accounting purposes and is a fraction of the current market price.
- Turnover: Cipla reported a turnover of ₹25,774 crore, reflecting its strong revenue generation capabilities. This turnover highlights the company’s effective market strategies and operational scale.
- PE Ratio: The stock’s Price-to-Earnings (PE) ratio is 28.7, indicating the price investors are willing to pay per unit of earnings.
- Debt: Cipla’s debt is ₹559 crore, which is relatively low compared to its equity. This low debt level supports financial stability and reduces financial risk.
- ROE: The Return on Equity (ROE) stands at 16.8%, showcasing the company’s efficiency in generating profits from shareholders’ equity. A higher ROE indicates strong financial performance and effective management.
- EBITDA Margin: Cipla’s EBITDA margin is 24.9%, reflecting its operational efficiency and profitability before accounting for interest, taxes, depreciation, and amortization.
- Dividend Yield: Cipla offers a dividend yield of 0.83%, providing a return to shareholders in the form of dividends. This yield demonstrates the company’s commitment to distributing profits to its investors.
Cipla Stock Performance
The table shows Cipla Ltd’s return on investment over various periods: 27% over 5 years, 20% over 3 years, and 26% over 1 year. These figures indicate consistent and strong performance, with substantial returns achieved across different investment horizons.
| Period | Return on Investment (%) |
| 5 Years | 27% |
| 3 Years | 20% |
| 1 Year | 26% |
Example: If A invested ₹1,00,000 in Cipla Ltd shares a year ago, the return on investment would be 26%. This means A’s investment has grown to ₹1,26,000.
Similarly, for a 3-year investment, the return would be 20%, increasing the value to ₹1,20,000.
While a 5-year investment would yield a return of 27%, growing the value to ₹1,27,000.
Cipla Peer Comparison
Cipla Ltd, with a market cap of ₹126,356.98 Crores, shows moderate performance compared to peers. While its returns lag behind leaders like Aurobindo Pharma and Lupin, its strong ROCE and consistent performance make it a solid competitor.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % | ROCE % | Div Yld % |
| 1 | Sun Pharma.Inds. | 1741.65 | 417964.25 | 1.7 | 13.37 | 53.55 | 17.32 | 0.78 |
| 2 | Cipla | 1563.8 | 126356.98 | 1.13 | 10.04 | 26.56 | 22.34 | 0.23 |
| 3 | Zydus Lifesci. | 1170.5 | 117774.67 | 1.71 | 16.01 | 82.42 | 22.8 | 0.83 |
| 4 | Dr Reddy’s Labs | 6801.05 | 113478.86 | 0.84 | 16.25 | 16.79 | 26.53 | 0.57 |
| 5 | Lupin | 2073.95 | 94483.15 | 1.98 | 24.72 | 91.68 | 15.72 | 0.38 |
| 6 | Aurobindo Pharma | 1519.7 | 89086.51 | 4.07 | 31.01 | 74.35 | 24.57 | 0 |
| 7 | Mankind Pharma | 2216.2 | 88897.03 | 1.74 | 5.91 | 21.79 | 14.1 | 0.31 |
Cipla Shareholding Pattern
The shareholding Pattern of Cipla Ltd shows a balanced distribution among various investor categories. Promoters hold a steady 30.91% of the shares in FY24, while Foreign Institutional Investors (FII) have 27.82%, Domestic Institutional Investors (DII) hold 24.94%, and retail investors account for 16.33%.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 2023 | |
| Promoters | 30.91 | 33.47 | 33.47 | 33.47 |
| FII | 27.82 | 25.82 | 25.73 | 25.74 |
| DII | 24.94 | 24.43 | 24.33 | 24.18 |
| Retail & others | 16.33 | 16.29 | 16.46 | 16.61 |
*All values in %
Cipla Ltd History
Cipla Ltd, founded in 1935 by Khwaja Abdul Hamied, started as a small pharmaceutical company in Mumbai. Over the decades, it has grown into one of India’s leading pharmaceutical giants, renowned for its commitment to providing affordable, high-quality medicines.
In the early years, Cipla played a pivotal role in India’s healthcare sector, gaining recognition from prominent dignitaries. By the 1960s, the company achieved significant milestones, such as crossing the ₹1 crore turnover mark. Cipla continued to innovate and expand its operations, installing advanced technologies like the ORG 2001 computer in the 1970s to streamline financial processes.
In recent years, Cipla has embraced digital health solutions and formed strategic partnerships, including those with Wellthy Therapeutics and Roche Products. The company has also been active in combating global health challenges, such as launching its version of remdesivir during the COVID-19 pandemic. Cipla’s legacy continues with its commitment to advancing healthcare worldwide.
How To Invest In Cipla Ltd Share?
Investing in Cipla Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Cipla Ltd shares and place your buy order.
Cipla Limited Fundamental Analysis – FAQs
Cipla Ltd fundamental analysis shows a market capitalization of ₹1,27,169 crore, a PE ratio of 28.7, a debt-to-equity ratio of 0.02, and a return on equity of 16.8%, indicating the company’s strong financial health and market position.
The market cap of Cipla Ltd as of August 12, 2024, is approximately ₹1,27,169 crore. This value reflects the company’s strong market position in the Indian pharmaceuticals industry.
Cipla Limited is a leading Indian pharmaceutical company known for manufacturing and distributing a wide range of affordable medicines. Established in 1935, it specializes in respiratory, cardiovascular, and anti-infective treatments, with a global presence in over 80 countries.
Cipla Ltd was founded by Khwaja Abdul Hamied in 1935, and the Hamied family continues to play a significant role. Yusuf Hamied, his son, is a key figure in the company and serves as the Non-Executive Chairman.
The main shareholders of Cipla Ltd include the founding family, particularly Yusuf Hamied and his relatives, who hold a significant stake. Additionally, institutional investors like mutual funds, insurance companies, and foreign portfolio investors are also major shareholders in Cipla.
Cipla operates in the pharmaceutical industry, focusing on the development, manufacturing, and distribution of medicines and healthcare products. It specializes in various therapeutic areas, including respiratory, cardiovascular, anti-infectives, and more, serving both domestic and international markets.
To invest in Cipla Ltd shares, open a brokerage account, complete KYC formalities, and fund your account. Search for Cipla’s stock (CIPLA) on the trading platform, decide on the number of shares, and place a buy order.
Determining if Cipla Ltd is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
