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Cipla Ltd

NSE: CIPLA BSE: 500087

1314.50

(-1.08)%

Mon, 02 Feb 2026, 03:53 am

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (6.4x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (6.2x coverage).
  • Dividends per share have been stable in the past 10 years.
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Cons

  • Cipla's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Cipla's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Cipla's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Cipla's earnings are expected to exceed the low risk growth rate next year.
  • Cipla's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • An improvement in Cipla's performance (ROE) is expected over the next 3 years.
  • Cipla's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for Cipla is expected to decrease over the next 2 years.
  • Cipla's earnings are expected to grow by 17.6% yearly, however this is not considered high growth (20% yearly).
  • Cipla's earnings growth is positive but not above the India market average.
  • Cipla's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Cipla is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Performance (ROE) is not expected to exceed the current IN Pharmaceuticals industry average.
  • Cipla's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Cipla's revenue is expected to grow by 7.9% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Cipla is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cipla is profitable, therefore cash runway is not a concern.
  • Cipla is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (108.9%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 4.2x debt.
  • Cipla's cash and other short term assets cover its long term commitments.
  • Cipla earns more interest than it pays, coverage of interest payments is not a concern.
  • Cipla's level of debt (17.5%) compared to net worth is satisfactory (less than 40%).
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Cons

  • The level of debt compared to net worth has increased over the past 5 years (16% vs 17.5% today).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Cipla board of directors is about average.
  • Umang's compensation has been consistent with company performance over the past year, both up more than 20%.
  • The tenure for the Cipla management team is about average.
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Cons

  • Umang's remuneration is higher than average for companies of similar size in India.
  • Cipla individual insiders have only sold shares in the past 3 months.

misc

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Pros

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    Cons

    • Cipla has significant price volatility in the past 3 months.

    past

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    Pros

    • Cipla's year on year earnings growth rate has been positive over the past 5 years.
    • Cipla has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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    Cons

    • Cipla's 1-year earnings growth is less than its 5-year average (1.2% vs 3.4%)
    • Cipla used its assets less efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
    • Cipla has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • Cipla's earnings growth has not exceeded the IN Pharmaceuticals industry average in the past year (1.2% vs 22.7%).

    value

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    Pros

    • CIPLA outperformed the Market in India which returned -14.5% over the past year.
    • NSEI:CIPLA is up 11.8% outperforming the Pharmaceuticals industry which returned 6.8% over the past month.
    • NSEI:CIPLA is up 11.8% outperforming the market in India which returned 8% over the past month.
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    Cons

    • Cipla's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Cipla's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Cipla is overvalued based on assets compared to the IN Pharmaceuticals industry average.
    • Cipla is poor value based on expected growth next year.
    • Cipla is overvalued based on earnings compared to the IN Pharmaceuticals industry average.
    • Cipla is overvalued based on earnings compared to the India market.
    • CIPLA underperformed the Pharmaceuticals industry which returned 26.7% over the past year.

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