CIPLA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Analysis: Cipla Ltd (CIPLA) Fundamental Rating: 4.4

📈 Core Financials Breakdown

Profit Metrics

EPS: ₹66.8 ➜ solid earnings base

PAT growth: ₹1,214 Cr → ₹1,292 Cr ➜ QoQ rise of ~9.88%

Return Ratios

ROE: 17.8% | ROCE: 22.7% ➜ high capital efficiency

Leverage

Debt-to-equity: 0.01 ➜ practically debt-free — excellent balance sheet strength

Dividend

Yield: 0.83% ➜ modest income potential, standard for pharma players

💸 Valuation Analysis

Indicator Value Assessment

P/E Ratio 23.6 Below industry PE (34.0) ➜ undervalued

P/B Ratio ~4.08 (1,574 ₹ / 386 ₹) ➜ fair for a quality name

PEG Ratio 0.92 Good balance of growth vs valuation

📉 Takeaway: Slightly undervalued — PEG < 1 and P/E below industry support long-term entry.

🏢 Business Model & Competitive Moat

One of India’s top pharma companies with deep global presence

Portfolio: generics, APIs, respiratory & oncology specialties

Competitive advantage

Strong US/Europe distribution

Consistent regulatory compliance

Digitally enabled manufacturing & R&D

📊 Institutional Flow

FII ↓ 1.04% ➜ minor foreign pullback

DII ↑ 1.09% ➜ strong domestic confidence

📉 Technical & Sentiment Check

RSI: 71.1 ➜ overbought — short-term caution advised

MACD: +10.3 ➜ momentum remains bullish

Price above both DMA50 and DMA200 ➜ trend remains positive

🔎 Suggested Entry Zone: ₹1,500–₹1,530 Wait for RSI to cool off — ideal to accumulate on dips closer to support.

📅 Long-Term Holding Strategy

Cipla is a prime pick for

Investors seeking low-volatility compounding in a defensive sector

Exposure to global pharma innovation and Indian healthcare demand

A debt-free, resilient balance sheet with strong margins and stable earnings

📌 With market leadership and valuation support, Cipla offers a smart anchor position in a diversified portfolio.

Want to compare Cipla with Sun Pharma or Dr. Reddy’s next? I can set up a pharma face-off with all the metrics side-by-side. Just say go.

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