NSEI:CIPLA

Stock Analysis Report

Executive Summary

Cipla Limited, together with its subsidiaries, manufactures and sells pharmaceutical products in India.

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Cipla's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.7%

CIPLA

4.0%

IN Pharmaceuticals

2.4%

IN Market


1 Year Return

-26.9%

CIPLA

-13.9%

IN Pharmaceuticals

8.0%

IN Market

Return vs Industry: CIPLA underperformed the Indian Pharmaceuticals industry which returned -13.9% over the past year.

Return vs Market: CIPLA underperformed the Indian Market which returned 8% over the past year.


Shareholder returns

CIPLAIndustryMarket
7 Day1.7%4.0%2.4%
30 Day1.2%-2.8%2.5%
90 Day-15.4%0.7%3.6%
1 Year-26.5%-26.9%-13.1%-13.9%10.3%8.0%
3 Year-20.2%-21.4%-24.6%-26.2%22.3%16.0%
5 Year-29.4%-30.8%-10.2%-12.9%42.8%29.3%

Price Volatility Vs. Market

How volatile is Cipla's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cipla undervalued compared to its fair value and its price relative to the market?

23.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CIPLA (₹454.25) is trading above our estimate of fair value (₹247.55)

Significantly Below Fair Value: CIPLA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CIPLA is poor value based on its PE Ratio (23.5x) compared to the Pharmaceuticals industry average (15.6x).

PE vs Market: CIPLA is poor value based on its PE Ratio (23.5x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: CIPLA is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: CIPLA is overvalued based on its PB Ratio (2.4x) compared to the IN Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is Cipla forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

14.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIPLA's forecast earnings growth (14.8% per year) is above the savings rate (7.6%).

Earnings vs Market: CIPLA's earnings (14.8% per year) are forecast to grow slower than the Indian market (18.4% per year).

High Growth Earnings: CIPLA's earnings are forecast to grow, but not significantly.

Revenue vs Market: CIPLA's revenue (9.2% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: CIPLA's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CIPLA's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has Cipla performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CIPLA's earnings have grown by 2% per year over the past 5 years.

Accelerating Growth: CIPLA's earnings growth over the past year (7%) exceeds its 5-year average (2% per year).

Earnings vs Industry: CIPLA earnings growth over the past year (7%) underperformed the Pharmaceuticals industry 14.2%.


Return on Equity

High ROE: CIPLA's Return on Equity (9.7%) is considered low.


Return on Assets

ROA vs Industry: CIPLA's Return on Assets is below or equal to the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: CIPLA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Cipla's financial position?


Financial Position Analysis

Short Term Liabilities: CIPLA's short term assets (₹124.3B) exceeds its short term liabilities (₹37.7B)

Long Term Liabilities: CIPLA's short term assets (124.3B) exceeds its long term liabilities (48.5B)


Debt to Equity History and Analysis

Debt Level: CIPLA's debt to equity ratio (28.1%) is considered satisfactory

Reducing Debt: CIPLA's debt to equity ratio has increased from 12.8% to 28.1% over the past 5 years.

Debt Coverage: CIPLA's debt is well covered by operating cash flow (39.2%).

Interest Coverage: CIPLA's interest payments on its debt are well covered by EBIT (25.3x coverage).


Balance Sheet

Inventory Level: CIPLA has a high level of physical assets or inventory.

Debt Coverage by Assets: CIPLA's debt is covered by short term assets (assets are 2.9x debt).


Next Steps

Dividend

What is Cipla's current dividend yield, its reliability and sustainability?

0.66%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%0.6%markettop25%2.4%industryaverage0.8%forecastin3Years0.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CIPLA's dividend (0.66%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: CIPLA's dividend (0.66%) is low compared to the top 25% of dividend payers in the Indian market (2.41%).

Stable Dividend: CIPLA's dividends per share have been stable in the past 10 years.

Growing Dividend: CIPLA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.5%), CIPLA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CIPLA's dividends in 3 years are forecast to be thoroughly covered by earnings (13.2% payout ratio).


Next Steps

Management

What is the CEO of Cipla's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Umang Vohra (48yo)

3.1yrs

Tenure

₹150,300,000

Compensation

Mr. Umang Vohra, B.E., M.B.A. has been Global Chief Executive Officer and Managing Director of Cipla Limited since September 1, 2016. Mr. Vohra served as the Global Chief Operating Officer of Cipla Limited ...


CEO Compensation Analysis

Compensation vs. Market: Umang's total compensation ($USD2.12M) is about average for companies of similar size in the Indian market ($USD1.57M).

Compensation vs Earnings: Umang's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.1yrs

Average Tenure

48yo

Average Age

Experienced Management: CIPLA's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

64yo

Average Age

Experienced Board: CIPLA's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell₹18,856,65618 Feb 19
Geena Malhotra
EntityIndividual
Shares35,062
Max Price₹537.81
Sell₹12,721,32611 Jan 19
Prabir Jha
EntityIndividual
Shares24,634
Max Price₹519.76
Sell₹2,575,00031 Dec 18
Nikhil Chopra
EntityIndividual
Shares5,000
Max Price₹515.00
Sell₹2,721,67810 Dec 18
Nikhil Chopra
EntityIndividual
Shares5,000
Max Price₹544.34
Sell₹5,318,91522 Nov 18
Prabir Jha
EntityIndividual
Shares10,000
Max Price₹531.89

Ownership Breakdown


Management Team

  • Umang Vohra (48yo)

    MD, Global CEO & Director

    • Tenure: 3.1yrs
    • Compensation: ₹150.30m
  • Kedar Upadhye (42yo)

    Global Chief Financial Officer

    • Tenure: 3.2yrs
    • Compensation: ₹35.53m
  • Samina Vaziralli (43yo)

    Executive Vice Chairperson

    • Tenure: 3.1yrs
    • Compensation: ₹64.10m
  • Raju Mistry (54yo)

    President & Global Chief People Officer

    • Tenure: 0.5yrs
  • Chandru Chawla (53yo)

    Global Head of CNV

    • Tenure: 6.3yrs
  • Alpesh Dalal

    Head of Investor Relations

    • Tenure: 0yrs
  • Gautam Rohidekar

    Chief Legal Officer

    • Tenure: 5yrs
  • Rajendra Chopra

    Compliance Officer & Company Secretary

    • Tenure: 2.7yrs
    • Compensation: ₹14.40m
  • Heena Kanal

    Vice President of Corporate Communications

    • Tenure: 0yrs
  • Raghunathan Ananthanarayanan

    Global Chief Operating Officer

    • Tenure: 1.2yrs

Board Members

  • YK Hamied (83yo)

    Non-Executive Chairman

    • Tenure: 6.5yrs
    • Compensation: ₹20.20m
  • Mustafa Hamied (79yo)

    Non Executive Vice-Chairman

    • Tenure: 5.5yrs
    • Compensation: ₹20.70m
  • Ashok Sinha (67yo)

    • Tenure: 6.3yrs
    • Compensation: ₹4.60m
  • Punita Lal (56yo)

    Non-Executive Independent Director

    • Tenure: 4.9yrs
    • Compensation: ₹4.10m
  • Naina Lal Kidwai (62yo)

    Non-Executive Independent Director

    • Tenure: 3.9yrs
    • Compensation: ₹4.30m
  • Adil Zainulbhai (66yo)

    Lead Independent Director

    • Tenure: 2.2yrs
    • Compensation: ₹3.80m
  • Umang Vohra (48yo)

    MD, Global CEO & Director

    • Tenure: 3.1yrs
    • Compensation: ₹150.30m
  • S. Radhakrishnan (62yo)

    Non-Executive Non Independent Director

    • Tenure: 8.9yrs
    • Compensation: ₹49.80m
  • Samina Vaziralli (43yo)

    Executive Vice Chairperson

    • Tenure: 3.1yrs
    • Compensation: ₹64.10m
  • Peter Mugyenyi (71yo)

    Non-Executive Independent Director

    • Tenure: 5.7yrs
    • Compensation: ₹4.30m

Company Information

Cipla Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cipla Limited
  • Ticker: CIPLA
  • Exchange: NSEI
  • Founded: 1935
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹365.879b
  • Shares outstanding: 806.08m
  • Website: https://www.cipla.com

Number of Employees


Location

  • Cipla Limited
  • Cipla House
  • Peninsula Business Park
  • Mumbai
  • Maharashtra
  • 400013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500087BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 1995
CIPLANSEI (National Stock Exchange of India)YesEquity SharesININRFeb 1995
CIPLABDL (Bourse de Luxembourg)GDR EACH REPR 1 ORD SHS OF INR2 REG'SLUUSDMay 2006

Biography

Cipla Limited, together with its subsidiaries, manufactures and sells pharmaceutical products in India. It offers active pharmaceutical ingredients; and formulations in various therapeutic areas, such as w ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:42
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.