Cipla Ltd (CIPLA) AI Stock Analysis

• Market Cap: ₹1.07T
• Dividend Yield: 0.87%
• Average Volume (3M): 41.77K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.83
• Revenue Growth: 6.93%
• EPS Growth: 21.55%
• Country: IN
• Employees: 27,764
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 11.20
• Shares Outstanding: 807,771,800
• 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: ₹1,645.00
• Price Target Upside: 8.27% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ₹1,443.00 ▼(-5.02% Downside)

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

Balance Sheet Strength

Exceptionally low leverage and a high equity ratio give Cipla durable financial flexibility. This balance sheet strength supports sustained capex for manufacturing, funds regulatory compliance and R&D, and provides a buffer in downturns, preserving strategic optionality over months.

Cash Generation

Robust free cash flow growth and strong cash conversion indicate the business reliably turns profits into spendable cash. That enables reinvestment in complex formulations, steady funding for launches, and the ability to absorb pricing shocks without eroding core operations over the medium term.

Diversified Product & Geographic Mix

A diversified portfolio across branded generics, international markets and respiratory/complex therapies reduces reliance on any single product or geography. Specialized device/formulation capabilities create higher entry barriers and support sustained margins in select segments over multiple quarters.

Negative Factors

Modest Revenue Growth

Mid-single-digit revenue growth limits operating leverage and may lag faster-growing peers. Without a clear acceleration from new product launches or market share gains, revenue trends could constrain margin expansion and investment capacity over the coming 2–6 months.

Declining EPS

Negative EPS growth signals pressure on earnings per share that can reflect margin compression, higher costs or one-time impacts. If this trend persists, it weakens internal funding for R&D and capacity, and may limit strategic initiatives over the medium term.

Exposure to Price Erosion & Regulatory Risk

Heavy exposure to tendering and generic competition creates structural downward price pressure. Coupled with dependence on regulatory approvals for launches, this raises the probability of revenue and margin volatility, requiring continuous successful launches and cost discipline to sustain profits.

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: 1519.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 1519.3 is above the 20-day moving average (MA) of 1402.49, above the 50-day MA of 1465.81, and above the 200-day MA of 1505.63, indicating a bearish trend. The MACD of -47.23 indicates Positive momentum. The RSI at 24.01 is Positive, neither overbought nor oversold. The STOCH value of 34.43 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	₹208.29B	24.82	―	0.69%	6.13%	35.83%
CIPLA	68 Neutral	₹1.07T	23.52	―	0.87%	6.93%	21.55%
SANOFI	67 Neutral	₹92.53B	25.97	―	4.73%	-19.94%	-22.49%
ABBOTINDIA	67 Neutral	₹588.07B	38.97	―	1.68%	10.69%	17.46%
GLAND	63 Neutral	₹304.07B	35.89	―	1.07%	-1.51%	14.27%
GLAXO	63 Neutral	₹406.14B	42.52	―	2.16%	4.17%	41.51%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Cipla Ltd Corporate Events

Cipla Publishes Q3 FY26 Earnings Call Transcript for Investors

Cipla Limited has released the transcript of its Q3 FY26 earnings conference call, held on 23 January 2026, and made it available to investors and the public via its website and stock exchanges. The disclosure, led by Managing Director and Global CEO Umang Vohra and the senior leadership team, underscores the company’s ongoing engagement with capital markets and regulatory transparency, providing stakeholders with detailed insights into its quarterly performance and strategic direction.

Cipla Publishes Audio Recording of Q3 and Nine-Month FY2025 Earnings Call

Cipla Limited has notified stock exchanges in India and the Luxembourg Stock Exchange that the audio recording of its earnings conference call for the quarter and nine months ended 31 December 2025 has been made available on the company’s website. The disclosure, made in line with SEBI’s listing and disclosure regulations, enhances transparency for investors and other stakeholders by providing direct access to management’s discussion of the company’s recent financial and operational performance.

Cipla Warns of Temporary Lanreotide Supply Disruption After USFDA Observations at Supplier

Cipla has disclosed that its key U.S. product Lanreotide Injection faces a temporary supply disruption after the USFDA issued nine inspectional observations for its exclusive supplier, Pharmathen International S.A., following an inspection of Pharmathen’s Rodopi, Greece facility. Production at Pharmathen has been paused to support remediation, resulting in limited Lanreotide availability until manufacturing restarts, with re-supply to the U.S. market expected in the first half of FY 2026-27; the company is monitoring inventories closely and has pledged to restore stable and reliable supply, a development with potential implications for its U.S. revenue and for patients reliant on the drug.

Cipla Ltd Receives ESG Rating of 66 for FY 2024-25

Cipla Ltd has been assigned an Environmental, Social, and Governance (ESG) rating of 66 for the fiscal year 2024-25 by NSE Sustainability Ratings & Analytics Limited, a SEBI registered ESG Rating Provider. This rating reflects Cipla’s commitment to sustainable practices and could enhance its reputation and attractiveness to investors focused on ESG criteria.

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.