Cipla Ltd (IN:CIPLA)
:CIPLA
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Cipla Ltd
(CIPLA)
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Rating:69Neutral
Price Target:
₹1,575.00
▲(3.67% Upside)
Action:Downgraded
Date:05/15/26
The score is primarily supported by strong financial resilience driven by a very conservative balance sheet and solid cash generation, offset by the most recent year’s revenue/margin reset and only moderate technical strength. Valuation is a secondary headwind given the ~25.5 P/E and ~1.0% dividend yield.
Positive Factors
Very strong, low‑debt balance sheet
A very low and declining debt load gives Cipla durable financial flexibility to fund R&D, regulatory compliance, manufacturing investment or opportunistic M&A without stressing liquidity. This conservatism reduces default risk and supports long-term strategic options.
Negative Factors
Sharp revenue decline and margin compression (FY2026)
A large, recent drop in revenue and margins signals structural pressures — lost volume, pricing erosion or product mix shifts — that can erode long-term earnings power. Recovery could require sustained volume gains, pricing improvement, or costly restructuring to restore margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Very strong, low‑debt balance sheet
A very low and declining debt load gives Cipla durable financial flexibility to fund R&D, regulatory compliance, manufacturing investment or opportunistic M&A without stressing liquidity. This conservatism reduces default risk and supports long-term strategic options.
Read all positive factors
Cipla Ltd (CIPLA) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.13T
Dividend Yield0.87%
Average Volume (3M)41.77K
Price to Earnings (P/E)44.5
Beta (1Y)0.59
Revenue Growth2.23%
EPS Growth-26.44%
CountryIN
Employees27,764
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)67.38
Shares Outstanding807,782,650
10 Day Avg. Volume63,362
30 Day Avg. Volume41,773
Financial Highlights & Ratios
PEG Ratio-0.96
Price to Book (P/B)2.87
Price to Sales (P/S)3.51
P/FCF Ratio39.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,335.00Price Target Upside-12.13% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)51.79
Revenue Forecast (FY)₹310.16B
Cipla Ltd Business Overview & Revenue Model
Company Description
Cipla Limited, together with its subsidiaries, manufactures and sells pharmaceutical products in India, the United States, South Africa, and internationally. The company offers active pharmaceutical ingredients; and formulations in various therape...
How the Company Makes Money
Cipla primarily makes money by selling pharmaceutical products (both branded formulations and generics) across India and international markets. Revenue is generated from: (1) Domestic finished-dosage sales in India, where Cipla markets prescriptio...
Cipla Ltd Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
90
Very Positive
Cash Flow
73
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 282.28B | 281.63B | 272.67B | 255.37B | 225.59B | 217.08B |
| Gross Profit | 156.84B | 120.36B | 180.92B | 164.93B | 141.04B | 130.18B |
| EBITDA | 76.80B | 59.25B | 70.22B | 61.91B | 49.19B | 44.39B |
| Net Income | 54.41B | 38.79B | 52.73B | 41.22B | 28.02B | 25.17B |
Balance Sheet | ||||||
| Total Assets | 401.64B | 424.96B | 373.87B | 327.18B | 294.63B | 271.01B |
| Cash, Cash Equivalents and Short-Term Investments | 83.35B | 89.87B | 106.17B | 77.96B | 62.77B | 46.32B |
| Total Debt | 4.67B | 6.14B | 4.39B | 5.60B | 8.03B | 10.56B |
| Total Liabilities | 71.39B | 79.76B | 60.98B | 59.15B | 57.50B | 59.84B |
| Stockholders Equity | 329.19B | 344.32B | 311.93B | 267.07B | 234.08B | 208.42B |
Cash Flow | ||||||
| Free Cash Flow | 6.80B | 25.27B | 38.43B | 27.85B | 20.55B | 26.25B |
| Operating Cash Flow | 13.45B | 41.26B | 50.05B | 41.34B | 32.38B | 33.26B |
| Investing Cash Flow | 1.59B | -25.33B | -36.91B | -29.88B | -23.89B | -18.72B |
| Financing Cash Flow | -13.18B | -12.12B | -12.93B | -12.00B | -9.58B | -16.00B |
Cipla Ltd Technical Analysis
Positive
1519.30
Price Trends
1292.31
Positive
1339.78
Positive
1438.96
Negative
Market Momentum
35.45
Negative
61.81
Neutral
73.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CIPLA, the sentiment is Positive. The current price of 1519.3 is above the 20-day moving average (MA) of 1356.06, above the 50-day MA of 1292.31, and above the 200-day MA of 1438.96, indicating a neutral trend. The MACD of 35.45 indicates Negative momentum. The RSI at 61.81 is Neutral, neither overbought nor oversold. The STOCH value of 73.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:CIPLA.
Cipla Ltd Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹591.22B | 34.86 | ― | 1.68% | 8.11% | 9.73% | |
71 Outperform | ₹383.75B | 27.20 | ― | 1.07% | 14.50% | 47.08% | |
71 Outperform | ₹72.89B | 18.01 | ― | 4.73% | -12.98% | -21.81% | |
69 Neutral | ₹1.13T | 44.55 | ― | 0.87% | 2.23% | -26.44% | |
69 Neutral | ₹391.29B | 37.33 | ― | 2.16% | 1.93% | 11.68% | |
64 Neutral | ₹213.96B | 29.89 | ― | 0.69% | 10.45% | -5.88% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
IN:CIPLA
Cipla Ltd
1,398.95
-69.06
-4.70%
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Cipla Ltd Corporate Events
Cipla approves FY26 results and recommends INR 13 final dividend
May 13, 2026
Cipla Ltd, a major Indian pharmaceutical manufacturer of generic and branded medicines, reported its audited standalone and consolidated financial results for the quarter and full year ended 31 March 2026. The results, along with an unmodified aud...
Cipla Clears FY26 Results, Proposes Rs 13 Final Dividend Per Share
May 13, 2026
Cipla Ltd’s board has approved the audited standalone and consolidated financial results for the quarter and full year ended 31 March 2026, accompanied by an unmodified auditor’s opinion and a confirmation from the Global Chief Financi...
Cipla Board Clears FY26 Results and Recommends Final Dividend
May 13, 2026
Cipla Ltd has announced that its board has approved the audited standalone and consolidated financial results for the quarter and full year ended 31 March 2026, supported by an unmodified opinion from its statutory auditors. The company has also c...
Cipla Wins U.S. FDA Nod for First AB-Rated Generic Ventolin Inhaler
Apr 23, 2026
Cipla has secured final U.S. FDA approval for its Abbreviated New Drug Application for Albuterol Sulfate Inhalation Aerosol, 90 mcg per actuation, the first AB-rated generic equivalent to GlaxoSmithKline’s Ventolin HFA. The inhaler, indicate...
Cipla Receives Two USFDA Observations After Routine Inspection at Goa Plant
Apr 17, 2026
Cipla has disclosed that the U.S. Food and Drug Administration conducted a routine current Good Manufacturing Practices and pre-approval inspection at its manufacturing facility in Verna, Goa, from 6 to 17 April 2026. At the close of the inspectio...
Cipla Backs IEPFA ‘Saksham Niveshak’ Drive With Shareholder Notices
Apr 16, 2026
Cipla has notified stock exchanges that it has published newspaper advertisements supporting the Investor Education and Protection Fund Authority’s Second 100-Day Campaign, ‘Saksham Niveshak’. The campaign targets the companyR...
Cipla shareholders clear appointment of Achin Gupta as MD and Global CEO via postal ballot
Mar 26, 2026
Cipla Limited has announced that shareholders have approved, via postal ballot, key board and management changes, including the appointment of Achin Gupta as director, managing director and global chief executive officer, and the re-appointment of...
Cipla Issues 1,954 Shares Under Employee Stock Schemes
Mar 18, 2026
Cipla Limited has allotted 1,954 fully paid-up equity shares of INR 2 each following the exercise of employee stock options and stock appreciation rights under its ESOS 2013-A and Cipla ESAR Scheme 2021. As a result of this relatively small issuan...
Cipla USA Recalls Lanreotide Injection, Causing Temporary Supply Disruption
Mar 9, 2026
Cipla’s U.S. subsidiary, Cipla USA Inc., has decided to initiate a recall of unexpired batches of Lanreotide Injection following discussions with Pharmathen International S.A. The move will result in a temporary lack of supply of this produc...
Cipla Seeks Shareholder Nod for New Global CEO and Board Changes via Postal Ballot
Feb 23, 2026
Cipla has initiated a postal ballot process to seek shareholder approval for key board and management changes, including the appointment of Achin Gupta as a director, and as managing director and global chief executive officer, along with approval...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.