CIPLA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.3

📈 Positive

• 💰 Zero debt (Debt-to-equity: 0.00) ensures financial resilience and low financial risk.
• 📊 Strong return metrics — ROCE at 20.1% and ROE at 16.0% reflect efficient capital deployment.
• 📈 EPS of ₹67.3 supports solid earnings visibility and valuation strength.
• 📉 Reasonable P/E of 23.4 compared to industry average of 33.1 suggests undervaluation.
• 📈 DII holding increased by 1.00%, indicating growing domestic institutional confidence.

⚠️ Limitation

• 📉 PEG ratio of 1.28 implies valuation is slightly stretched relative to growth.
• 📉 Quarterly PAT declined from ₹1,303 Cr. to ₹1,211 Cr., showing margin pressure.
• 📉 RSI at 45.0 and MACD at 10.6 suggest neutral technical momentum.
• 📉 Trading below DMA50 and DMA200 (₹1,555 and ₹1,519), indicating short-term weakness.

📰 Company Negative News

• 📉 FII holding declined by 0.70%, reflecting reduced foreign investor interest.
• 📉 Quarterly profit variation of just 2.75% indicates stagnation in earnings growth.

🌟 Company Positive News

• 📈 Volume more than double 1-week average suggests strong investor interest and potential accumulation.
• 📈 Consistent profitability with PAT over ₹1,200 Cr. despite sectoral challenges.

💊 Industry

• 💊 CIPLA operates in the pharmaceutical sector, with a strong presence in generics, respiratory, and chronic therapies.
• 📊 Industry P/E of 33.1 reflects high growth expectations and premium valuations for quality pharma players.

🧭 Conclusion

• 📌 Suggested entry zone: ₹1,450–₹1,490, near support and below DMA levels for better margin of safety.
• 🕰️ Long-term holding favorable due to strong fundamentals, zero debt, and diversified product portfolio.
• ⚖️ Monitor earnings growth and technical breakout for confirmation of trend reversal.