Cipla Ltd Stock Analysis

BSE: 500087 | NSE: CIPLA | Pharmaceuticals & Drugs | Large Cap

BSE Share Price 23-Sep-2022 18:01
1067.80 6.10 (0.57%)

DeciZen - Make an Informed Decision on Cipla

Overall Rating

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

Cipla Price Chart

P/E Ratio (CD) :
34.73
Market Cap :
86,171.6 Cr.
52-wk low :
850
52-wk high :
1,101
Bole Toh?

1. Is Cipla Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Cipla Ltd is a good quality company.

2. Is Cipla Ltd undervalued or overvalued?

The key valuation ratios of Cipla Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Cipla Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Cipla Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Cipla:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 16.8%13.2%10.2%9.3%6%7.9%7.5%7.9%12.5%12.4%-
Value Creation Index 0.50.2-0.1-0.2-0.5-0.3-0.3-0.30.10.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 8,27910,17311,34513,59514,39415,15616,36217,13219,16021,76321,471
YoY Gr. Rt. %-22.9%11.5%19.8%5.9%5.3%8%4.7%11.8%13.6%-
Adj EPS 18.216.313.715.411.416.516.417.129.131.630.8
YoY Gr. Rt. %--10.3%-15.8%12.3%-26.4%45.1%-0.2%3.9%70.4%8.6%-
BVPS (₹) 112.2124.8133.4142.2155.2175.9185.6194.9226.7257.8266.5
Adj Net Profit 1,4621,3101,1031,2399141,3271,3251,3772,3472,5502,489
Cash Flow from Ops. 1,3981,5631,1731,7412,3821,4631,6913,0683,7553,326-
Debt/CF from Ops. 0.70.81.531.72.82.60.90.50.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 11.3%8.6%10%13.6%
Adj EPS 6.3%22.7%24.3%8.6%
BVPS 9.710.711.613.7
Share Price 11.1% 13.1% 34.5% 10.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 17.613.710.611.17.69.99.1913.81311.8
Op. Profit Mgn % 26.821.119.118.217.618.718.918.722.220.720.3
Net Profit Mgn % 17.713.210.49.46.68.88812.211.911.6
Debt to Equity 0.10.10.20.50.30.30.30.20.10-
Working Cap Days 2302222482202002111511401341350
Cash Conv. Cycle 114107112107106103595352560

Recent Performance Summary

Net Profit is growing at healthy rate in last 3 years 24.34%

Return on Equity has declined versus last 3 years average to 11.80%

Sales growth has been subdued in last 3 years 9.97%

Sales growth is not so good in last 4 quarters at 6.77%

Latest Financials - Cipla Ltd.

Standalone Consolidated
TTM EPS (₹) 32.6 30.8
TTM Sales (₹ Cr.) 13,681 21,471
BVPS (₹.) 286.5 266.5
Reserves (₹ Cr.) 22,959 21,343
P/BV 3.73 4.02
PE 32.72 34.73
From the Market
52 Week Low / High (₹) 850.00 / 1101.00
All Time Low / High (₹) 2.22 / 1101.00
Market Cap (₹ Cr.) 86,172
Equity (₹ Cr.) 161.4
Face Value (₹) 2
Industry PE 37.9

Management X-Ray of Cipla :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Cipla

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Cipla Ltd

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.
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