Cipla Ltd (CIPLA) AI Stock Analysis

• Market Cap: ₹1.21T
• Dividend Yield: 0.86%
• Average Volume (3M): 39.64K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.67
• Revenue Growth: 6.40%
• EPS Growth: 25.27%
• Country: IN
• Employees: 27,764
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 16.06
• Shares Outstanding: 807,765,700
• 10 Day Avg. Volume: 66,059
• 30 Day Avg. Volume: 39,639
• 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: ₹1,613.13
• Price Target Upside: 7.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 62 Neutral
• Price Target: ₹1,600.00 ▲(7.04% Upside)

Cipla Ltd's overall stock score is primarily driven by its strong financial performance, which is offset by bearish technical indicators. The fair valuation suggests moderate growth potential, but the technical analysis indicates potential short-term challenges. The absence of earnings call data and corporate events means these factors do not influence the score.

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 makes money through the sale of pharmaceutical products across various therapeutic segments. Its revenue model is primarily based on generic drug manufacturing, where it develops cost-effective versions of branded drugs once their patents expire. Key revenue streams include domestic sales in India, which contribute significantly to its earnings, and international markets, notably in North America, Europe, and emerging markets. Cipla's earnings are also bolstered by its strategic partnerships and collaborations with other pharmaceutical companies to co-develop and supply medications globally. The company invests in research and development to expand its product portfolio and enhance its presence in specialty therapeutics, thereby driving growth and 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: Neutral
• Last Price: 1494.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 1494.7 is below the 20-day moving average (MA) of 1531.23, below the 50-day MA of 1543.18, and above the 200-day MA of 1487.05, indicating a neutral trend. The MACD of -12.63 indicates Positive momentum. The RSI at 44.71 is Neutral, neither overbought nor oversold. The STOCH value of 49.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:CIPLA.

Cipla Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLAND	69 Neutral	₹319.56B	41.49	―	0.93%	-2.34%	6.64%
PFIZER	69 Neutral	₹237.23B	29.34	―	0.67%	4.35%	32.89%
GLAXO	66 Neutral	₹463.99B	48.83	―	1.96%	6.65%	48.47%
CIPLA	62 Neutral	₹1.21T	22.39	―	0.86%	6.40%	25.27%
ABBOTINDIA	62 Neutral	₹634.29B	43.67	―	1.60%	11.17%	17.22%
SANOFI	62 Neutral	₹109.17B	30.12	―	2.49%	-23.93%	-31.53%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Cipla Ltd Corporate Events

Cipla Ltd Allots 2,853 Equity Shares Under Employee Stock Schemes

Cipla Limited has announced the allotment of 2,853 equity shares under its Employee Stock Option Scheme 2013-A and the Cipla Employee Stock Appreciation Rights Scheme 2021. This move increases the company’s issued, subscribed, and paid-up share capital to INR 1,61,55,08,148, reflecting its ongoing commitment to employee engagement and retention strategies.

Cipla Opens Special Window for Physical Share Transfers

Cipla Ltd announced the opening of a special window for the re-lodgement of transfer requests for physical shares, as per the SEBI regulations. This initiative, communicated through newspaper advertisements, aims to facilitate shareholders in transferring their physical shares, reflecting the company’s commitment to compliance and shareholder engagement.

Cipla Ltd Announces Strong Q1 2025 Financial Results

Cipla Ltd has released its unaudited financial results for the quarter ended June 30, 2025, showing a revenue from continuing operations of ₹3,719 crore and a net profit of ₹316 crore. The results indicate a significant improvement in profitability compared to the previous quarter, reflecting Cipla’s robust operational performance and strategic market positioning. This financial update is crucial for stakeholders as it highlights the company’s resilience and growth potential in the competitive pharmaceutical industry.