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Cipla Ltd Stock Analysis

Large Cap
Evaluated by 9800 users | BSE: 500087 | NSE: CIPLA |
Pharmaceuticals & Drugs

Cipla Limited is a global pharmaceutical company focused on responsible and sustainable growth of complex generics and deepening portfolio in home markets of India, South Africa and North America, as well as key regulated and emerging markets. Equity Shares...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Cipla Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 14.65%15.33%16.98%13.24%10.39%11.33%8.88%10.56%12.04%13.11%
Value Creation Index 0.400.360.480.15-0.10-0.01-0.23-0.080.020.14
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 6,3316,9788,2029,45710,13211,95110,76811,39012,37412,659
Y-o-Y Gr. Rt.-10.2%17.6%15.3%7.1%18%-9.9%5.8%8.6%2.3%
Adjusted EPS (Rs.) 11.7313.7218.1116.0413.9816.7714.1317.8822.3126.68
Y-o-Y Gr. Rt.-17%32%-11.4%-12.8%20%-15.7%26.5%24.8%19.6%
Book Value per Share (Rs.) 82.2593.93110.36125.31137.12148.08158.37174.63195.35215.43
Adjusted Net Profit 9421,1021,4541,2881,1231,3471,1371,4391,7982,151
Net Op. Cash Flow (Rs. Cr.) 9871,6451,3811,8121,0511,7282,2071,1171,4682,018
Debt to Cash Flow from Ops 0.450.010.70.481.310.650.150.1600
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Cipla Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 8%4.6%5.5%2.3%
Adjusted EPS 9.6%13.8%23.6%19.6%
Book Value per Share 11.39.510.810.3
Share Price 9.8% 3.5% 8.7% 65.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 15.0315.5617.7113.5810.611.679.1810.712.0312.96
Operating Profit Margin (%) 20.9423.226.0321.1119.4417.1817.4419.2820.1821.07
Net Profit Margin (%) 14.8715.7917.7213.6211.0811.2710.5612.6414.5316.99
Debt to Equity 0.0700.110.090.130.10.030.0100
Working Capital Days 306263236236268224216220215218
Cash Conversion Cycle 1301251131101151041079898109
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 36.70%
Institutions 39.82%
Non-Institutions 23.48%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Cipla Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Cipla Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Cipla Ltd's performance infers:

Cipla Ltd earnings have grown by 13.8%, whereas share price has appreciated 3.5% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Cipla Ltd share prices over the last 10 years. Here is what we found out:

Cipla Ltd share price has appreciated 7.5% annually over the past ten years.

Cipla Limited is a global pharmaceutical company focused on responsible and sustainable growth of complex generics and deepening portfolio in home markets of India, South Africa and North America, as well as key regulated and emerging markets. Equity Shares of the Company are listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited.

Business area of the

Cipla Limited is a global pharmaceutical company focused on responsible and sustainable growth of complex generics and deepening portfolio in home markets of India, South Africa and North America, as well as key regulated and emerging markets. Equity Shares of the Company are listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited.

Business area of the company

The company is in the business of manufacturing, developing, and marketing wide range of branded and generic formulations and Active Pharmaceutical Ingredients (APIs). The company has its wide network of manufacturing, trading and other incidental operations in India and International markets.

Products

  • Generics and branded generics
  • Specialty
  • Consumer health

Awards:

2013:

  • Ernst & Young awarded Dr. Y K Hamied with the Lifetime Achievement Award of the year 2013
  • Dr. Hamied honoured with the Greatest Global Indian Living Legend Award by NDTV
  • Viragaonagar unit won the Excellence Award in Environment Health & Safety (EHS)
  • Bagged the prestigious LegalEra Award for the Best Pharmaceutical in-house Legal team.

2014

  • Cipla won the Global L&D Team of the Year Award
  • Brand, Azee bagged the Marketing Excellence Award in 2014
  • Won the 'Silver' award from Pharmexcil for Outstanding Performance in the export of Pharmaceuticals
  • Network 18 and Infosys awarded Cipla for innovation on HIV/AIDS drugs

2015:

  • Won the Award for Excellence in Rural Reach at India Pharma Awards
  • Accredited to be in Top 10 of Hot 50 Brands in Mumbai, under ‘Large Organization Category’ at the Mumbai Brand Summit
  • Won the Social Contributors Award at the Annual Pitch Top 50 Brands Awards organized by Dainik Bhaskar
  • Best Company Award to focus in Overall Nursing Home Development at the first ever CIMS Healthcare Excellence Awards
  • ABP News honored Dr. Y.K. Hamied with the ‘Lifetime Achievement Award’ at the Brand Excellence Awards 2015

2016:

  • The Indian Manufacturers’ Association (IDMA) honoured Dr. Hamied with IDMA Lifetime Achievement Award for his outstanding contribution to the Indian pharmaceutical industry.
  • Moroccan Society of ENT honoured Cipla Morocco team for contribution to the education of the physics.
  • Dr. Y.K. Hamied was honoured with the Lifetime Achievement Award at the Forbes India Leadership Awards 2016.
  • Won two awards for Supplier Relationship Management and People Management at the CPO Awards 2016
  • Received an award for Acnedep Gel packaging at the 'India Packaging Awards' 2016
  • Won the ABP News Healthcare Leadership Award for excellence in managing Primary Care Practitioners

2017:

  • Digital team bagged two of the most prestigious awards of the digital world - Digital Pioneer of the year 2017 and Best company for leveraging technology in mobile application.
  • ActivKids Immuno Boosters won the Emerging Nutrition Brand of the Year awarded by CIMS.
  • Cipla Health won a place in the Economic Times Best Asian Healthcare Brands 2017

2018:

  • India Packaging Awards for Excellence in Enhanced User Experience for Mesalo Foam packaging
  • Silver Plasticon Award 2018 for Excellence and Innovation in flexible packaging for Acnedap Plus
  • SCMPro Logistics and Supply Chain Awards for 'Excellence in Pharma Supply Chain Management, Procurement Transformation of the Year' and 'Best Sourcing Analytics'.
  • Global Logistics Excellence Award for 'Best Digital Transformation in Pharma' in the Supply Chain Practitioners category
  • Breathefree website bags DMA Asia Echo Award (Silver) for Best Digital Destination and Leader Certificate in Pharma & Healthcare category
  • India Pharma Awards for Breathefree - 'Best Patient Outreach Programme of the Year', Digital Innovation
  • Indian Digital Awards (IDA) for Excellence in Digital Publishing
  • ABP News Healthcare Leadership Award for Excellence in Improving Awareness, Detection of Health Issues and Adherence to Treatment Regimen in the Emerging Markets

2019:

  • Cipla receives the 18th ICSI (Institute of Company Secretaries of India) National Award for Excellence in Corporate Governance in January 2019.
  • Highly Commended - 'Best Working Capital Management Solution Award' at the Adam Smith Awards Asia 2019
  • 'Innovation in Generics' Award for Sereflo at the UK Pharmacy Business Awards 2019
  • ‘Indo-American Corporate Excellence Award' for Excellence in Manufacturing (Category II) by the Indo-American Chamber of Commerce
  • Most Outstanding Company in India - Healthcare category at the Asiamoney Asia’s Outstanding Companies Poll 2019

2020:

  • Cipla Sri Lanka is Great Place to Work Certified
  • Cipla is Great Place to Work Certified
  • ‘Digital Supply Chain Enterprise Award’ at the 9th edition of the Manufacturing Supply Chain Awards 2020
  • Golden Peacock Award for CSR 2019 in recognition of Cipla Foundation's significant contribution towards social change
  • What’s Up Cipla bags the 'Best Small Idea, Big Impact Communication of the Year' at the Corp Comm & PR Excellence Awards 2020
  • The Institute of Chartered Accountants of India Award for Excellence in Financial Reporting 2018-19 under the category of companies publishing integrated annual report

Milestones

  • 1935: Operations commence from a rented bungalow at 289, Bellasis Road, Bombay Central.
  • 1939: Mahatma Gandhi visits Cipla, inspiring the Founder Dr K A Hamied to produce vital and life-saving medicines for India.
  • 1947: Cipla celebrates India attaining Independence with a flag hoisting ceremony at Bombay Central Headquarters.
  • 1970: Cipla becomes one of the pioneers to manufacture APIs (active pharmaceutical ingredients).
  • 1977: Inauguration of the Cipla Research and Production Complex in Bangalore by Mrs. Luba K Hamied.
  • 1997: Cipla Palliative Care and Training Centre is set up in Pune to provide free holistic care to terminally-ill cancer patients and their families.
  • 2001: Cipla ushers in a new paradigm in antiretroviral therapy (ART) by offering the triple ARV FDC at USD 1-a-day, thus opening the floodgates for affordability and accessibility in HIV/AIDS treatment.
  • 2013: Cipla acquires 100% of share capital of Cipla Medpro (South Africa).
  • 2016: Cipla strengthens its presence in the US market with the acquisition of InvaGen Pharmaceuticals Inc. and Exelan Pharmaceuticals Inc. thus expanding its reach in the US market, with a balanced portfolio.
  • 2017: Cipla launches Synchrobreathe, a state of-the-art innovative breath-actuated inhaler, helping millions with Obstructive Airway Diseases such as asthma.
  • 2019: Cipla enters digital therapeutics by partnering with Wellthy Therapeutics in India and Brandmed in South Africa to bring together behavioural science, real world clinical evidence and artificial intelligence to provide real time monitoring, coaching and advice to patients.
  • 2020: Cipla leads the fight against COVID-19 through a spectrum of vital drugs that show potency against the virus. With unmatched portfolio of drugs and devices and leadership across India and key emerging markets, Cipla launches global lung leadership aspiration - Breathe. Think Cipla. In the US, the approval for generic AIbuterol MDI and successful Phase-3 completion of clinical study for generic Advair Diskus furthers this ambition.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
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