Cipla Ltd (CIPLA) AI Stock Analysis

• Market Cap: ₹1.26T
• Dividend Yield: 0.83%
• Average Volume (3M): 30.00K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.66
• 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: 807,754,100
• 10 Day Avg. Volume: 10,993
• 30 Day Avg. Volume: 29,995
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹1,609.56
• Price Target Upside: 1.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 73 Outperform
• Price Target: ₹1,676.00 ▲(6.19% Upside)

Cipla Ltd's strong financial performance is the most significant factor, showcasing robust revenue growth and financial stability. Technical analysis indicates a neutral to slightly bullish trend, while valuation metrics suggest the stock is fairly valued. The absence of earnings call data and corporate events does not impact 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	272.35B	271.45B	254.47B	224.73B	216.23B	189.89B
Gross Profit	154.17B	182.16B	164.03B	135.13B	123.94B	109.68B
EBITDA	79.90B	71.28B	67.20B	51.52B	45.88B	44.36B
Net Income	52.73B	52.73B	41.22B	28.02B	25.17B	24.05B
Balance Sheet
Total Assets	373.87B	373.87B	327.18B	294.63B	271.01B	251.52B
Cash, Cash Equivalents and Short-Term Investments	80.93B	80.93B	77.79B	62.63B	46.32B	37.46B
Total Debt	4.38B	4.38B	5.59B	8.03B	10.56B	20.14B
Total Liabilities	60.98B	60.98B	59.15B	57.50B	59.84B	65.66B
Stockholders Equity	311.93B	311.93B	267.06B	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: Positive
• Last Price: 1578.35
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 1578.35 is above the 20-day moving average (MA) of 1571.81, above the 50-day MA of 1535.68, and above the 200-day MA of 1483.22, indicating a bullish trend. The MACD of 6.22 indicates Positive momentum. The RSI at 56.55 is Neutral, neither overbought nor oversold. The STOCH value of 59.89 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIPLA	73 Outperform	₹1.26T	23.35		0.83%	6.40%	25.27%
GLAND	69 Neutral	327.51B	42.52	7.63%	0.89%	-2.34%	6.64%
PFIZER	69 Neutral	238.05B	29.44	18.20%	0.67%	4.35%	32.89%
GLAXO	66 Neutral	463.41B	48.77	47.54%	1.96%	6.65%	48.47%
ABBOTINDIA	62 Neutral	657.63B	45.28	33.41%	1.54%	11.17%	17.22%
SANOFI	62 Neutral	116.36B	32.10	48.02%	2.33%	-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.