Cipla Ltd (CIPLA) AI Stock Analysis

• Market Cap: ₹1.23T
• Dividend Yield: 0.86%
• Average Volume (3M): 41.77K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.71
• Revenue Growth: 6.93%
• EPS Growth: 21.55%
• Country: IN
• Employees: 27,764
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 16.72
• Shares Outstanding: 807,771,240
• 10 Day Avg. Volume: 63,362
• 30 Day Avg. Volume: 41,773
• PEG Ratio: 0.79
• Price to Book (P/B): 3.74
• Price to Sales (P/S): 4.28
• P/FCF Ratio: 30.37
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,786.67
• Price Target Upside: 18.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ₹1,637.00 ▲(8.61% Upside)

Cipla Ltd's overall stock score is driven primarily by its strong financial performance, which highlights growth potential and financial resilience. However, technical indicators suggest a bearish trend, which tempers the overall score. The valuation is fair, providing a balanced view of the stock's potential.

Positive Factors

Financial Stability

Cipla's low leverage indicates strong financial stability, providing resilience against economic downturns and flexibility for future investments.

Cash Generation

Strong cash generation supports Cipla's ability to invest in R&D, pay dividends, and reduce debt, enhancing long-term shareholder value.

Revenue Growth

Consistent revenue growth reflects Cipla's successful market expansion and product adoption, strengthening its competitive position.

Negative Factors

Market Sentiment

Persistent bearish technical indicators may affect investor confidence, potentially impacting capital raising and stock performance.

Guidance Uncertainty

Lack of earnings guidance can create uncertainty about future performance, affecting investor expectations and strategic planning.

Industry Challenges

Intense competition in the pharmaceutical sector can pressure margins and require continuous innovation, impacting long-term profitability.

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 therapeutic areas, such as MI, angina, heart failure, hypertension, arrhythmia, lipid abnormalities and diabetes, obesity, HIV, respiratory, urology, oncology, cardio-metabolism, child health, infectious diseases and critical care, hepatitis, women's health, ophthalmology, and neuro psychiatry. It also provides respiratory products, including inhalers and nasal sprays, as well as other respiratory products consists of injectables and biosimilars. Cipla Limited has a licensing agreement with Merck & Co., Inc. for the manufacturing and distribution of Molnupiravir, an investigational oral antiviral drug; a license agreement with Eli Lilly and Company for the manufacture and commercialization of the drug baricitinib for Covid-19 indication; and collaborations with Dr. Reddy's Laboratories Ltd, Sun Pharmaceutical Industries Limited, Emcure Pharmaceuticals Limited, and Torrent Pharmaceuticals Limited for the clinical trial of the investigational oral anti-viral drug Molnupiravir. The company was incorporated in 1935 and is headquartered in Mumbai, India.

How the Company Makes Money

Cipla generates revenue primarily through the sale of generic and branded pharmaceutical products, which are distributed through various channels including retail pharmacies, hospitals, and healthcare institutions. The company's revenue model is diversified across several key streams: domestic sales, which contribute significantly to overall revenue; international sales, particularly in markets such as the United States, Europe, and Africa; and specialty products that target niche areas like oncology and respiratory health. Cipla also engages in partnerships and collaborations with other pharmaceutical companies and research organizations, enhancing its product offerings and expanding its market reach. Additionally, the company benefits from economies of scale in manufacturing and a robust supply chain, contributing to its overall profitability.

Cipla Ltd Financial Statement Overview

Summary

Cipla Ltd demonstrates strong financial performance with impressive revenue and profit growth, efficient cost management, and robust operational margins. The low debt-to-equity ratio and high equity ratio underscore financial stability, while strong cash flow metrics highlight effective cash management.

Income Statement

Cipla Ltd has shown a strong revenue growth trajectory, with a 6.68% increase in total revenue from 2024 to 2025. The gross profit margin remains robust at approximately 67.13% for 2025, indicating efficient cost management. The net profit margin improved to 19.42%, reflecting enhanced profitability. EBIT and EBITDA margins are also strong at 49.29% and 26.25%, respectively, showcasing solid operational performance.

Balance Sheet

The company exhibits a healthy balance sheet with a low debt-to-equity ratio of 0.01, suggesting low leverage and financial stability. Return on equity is impressive at 16.90%, indicating effective use of equity capital. The equity ratio of 83.41% demonstrates a strong equity base relative to total assets, highlighting financial resilience.

Cash Flow

Cipla's cash flow metrics are positive, with a notable free cash flow growth rate of 37.97% from 2024 to 2025. The operating cash flow to net income ratio is 0.95, indicating a good conversion of profits into cash. The free cash flow to net income ratio stands at 0.73, reflecting sound cash generation relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	276.00B	272.67B	255.37B	225.59B	217.08B	191.21B
Gross Profit	168.82B	180.92B	164.93B	141.04B	130.18B	116.14B
EBITDA	73.89B	70.22B	61.91B	49.19B	44.39B	41.24B
Net Income	53.92B	52.73B	41.22B	28.02B	25.17B	24.05B
Balance Sheet
Total Assets	0.00	373.87B	327.18B	294.63B	271.01B	251.52B
Cash, Cash Equivalents and Short-Term Investments	106.17B	106.17B	77.96B	62.77B	46.32B	37.46B
Total Debt	0.00	4.39B	5.60B	8.03B	10.56B	20.24B
Total Liabilities	-312.89B	60.98B	59.15B	57.50B	59.84B	65.66B
Stockholders Equity	312.89B	311.93B	267.07B	234.08B	208.42B	183.27B
Cash Flow
Free Cash Flow	0.00	38.43B	27.85B	20.55B	26.25B	29.36B
Operating Cash Flow	0.00	50.05B	41.34B	32.38B	33.26B	37.55B
Investing Cash Flow	0.00	-36.91B	-29.88B	-23.89B	-18.72B	-23.87B
Financing Cash Flow	0.00	-12.93B	-12.00B	-9.58B	-16.00B	-12.40B

Cipla Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1507.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CIPLA, the sentiment is Negative. The current price of 1507.25 is below the 20-day moving average (MA) of 1513.77, below the 50-day MA of 1533.59, and above the 200-day MA of 1506.14, indicating a neutral trend. The MACD of -7.17 indicates Negative momentum. The RSI at 46.11 is Neutral, neither overbought nor oversold. The STOCH value of 58.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CIPLA.

Cipla Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFIZER	69 Neutral	₹228.88B	27.27	―	0.70%	6.13%	35.83%
CIPLA	68 Neutral	₹1.23T	22.52	―	0.86%	6.93%	21.55%
SANOFI	67 Neutral	₹97.67B	27.41	―	4.58%	-19.94%	-22.49%
ABBOTINDIA	67 Neutral	₹594.12B	39.37	―	1.70%	10.69%	17.46%
GLAND	63 Neutral	₹276.75B	35.01	―	1.08%	-1.51%	14.27%
GLAXO	63 Neutral	₹440.12B	46.07	―	2.09%	4.17%	41.51%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Cipla Ltd Corporate Events

Cipla Ltd Completes Acquisition of Inzpera Healthsciences

Cipla Ltd has announced the completion of its acquisition of a 100% stake in Inzpera Healthsciences Limited, making Inzpera a wholly owned subsidiary. This strategic move is expected to enhance Cipla’s market positioning and expand its portfolio in the healthcare sector, potentially benefiting stakeholders by broadening the company’s capabilities and reach.

Cipla Ltd Confirms Regulatory Compliance with SEBI Regulations

Cipla Ltd has submitted a certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, confirming the processing of dematerialization requests for the quarter ending September 30, 2025. This announcement underscores Cipla’s compliance with regulatory requirements, ensuring that its securities are properly managed and listed on the relevant stock exchanges, thereby maintaining transparency and trust with its stakeholders.

Cipla Ltd to Announce Q2FY26 Financial Results on October 30, 2025

Cipla Ltd has announced that it will release its unaudited financial results for the second quarter of the fiscal year 2026 on October 30, 2025. The company will host an earnings conference call on the same day to discuss its financial performance and address questions from stakeholders. This announcement is part of Cipla’s ongoing efforts to maintain transparency with investors and stakeholders, potentially impacting its market positioning and investor relations.