Cipla Limited
Cipla Limited Fundamental Analysis
Cipla Limited (CIPLA.BO) shows moderate financial fundamentals with a PE ratio of 23.91, profit margin of 16.11%, and ROE of 14.68%. The company generates $282.4B in annual revenue with moderate year-over-year growth of 6.78%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CIPLA.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCIPLA.BO demonstrates superior asset utilization.
Valuation Score
ExcellentCIPLA.BO trades at attractive valuation levels.
Growth Score
ExcellentCIPLA.BO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCIPLA.BO maintains a strong and stable balance sheet.
Profitability Score
WeakCIPLA.BO struggles to sustain strong margins.
Key Financial Metrics
Is CIPLA.BO Expensive or Cheap?
P/E Ratio
CIPLA.BO trades at 23.91 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CIPLA.BO's PEG of -1.45 indicates potential undervaluation.
Price to Book
The market values Cipla Limited at 3.30 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.70 times EBITDA. This signals the market has high growth expectations.
How Well Does CIPLA.BO Make Money?
Net Profit Margin
For every $100 in sales, Cipla Limited keeps $16.11 as profit after all expenses.
Operating Margin
Core operations generate 15.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.68 in profit for every $100 of shareholder equity.
ROA
Cipla Limited generates $11.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cipla Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Cipla Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
CIPLA.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.85
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How CIPLA.BO Stacks Against Its Sector Peers
| Metric | CIPLA.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.91 | 29.45 | Better (Cheaper) |
| ROE | 14.68% | 779.00% | Weak |
| Net Margin | 16.11% | -24936.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.26 | Strong (Low Leverage) |
| Current Ratio | 3.96 | 4.65 | Strong Liquidity |
| ROA | 11.32% | -19344.00% (disorted) | Strong |
CIPLA.BO outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cipla Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
59.21%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
240.02%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
62.68%
Industry Style: Defensive, Growth, Innovation
High Growth