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Cipla

NSEI:CIPLA
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CIPLA
NSEI
₹431B
Market Cap
  1. Home
  2. IN
  3. Pharmaceuticals & Biotech
Company description

Cipla Limited, together with its subsidiaries, manufactures and sells pharmaceutical products in India. The last earnings update was 41 days ago. More info.


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CIPLA Share Price and Events
7 Day Returns
-0.8%
NSEI:CIPLA
0.5%
IN Pharmaceuticals
1.2%
IN Market
1 Year Returns
-3.3%
NSEI:CIPLA
2%
IN Pharmaceuticals
2.3%
IN Market
CIPLA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cipla (CIPLA) -0.8% -1.1% 1.9% -3.3% -0.1% 36.6%
IN Pharmaceuticals 0.5% 6.5% 2.1% 2% -11.6% 40.4%
IN Market 1.2% 7.8% 2.2% 2.3% 43.7% 81.1%
1 Year Return vs Industry and Market
  • CIPLA underperformed the Pharmaceuticals industry which returned 2% over the past year.
  • CIPLA underperformed the Market in India which returned 2.3% over the past year.
Price Volatility
CIPLA
Industry
5yr Volatility vs Market

Value

 Is Cipla undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Cipla to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cipla.

NSEI:CIPLA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 30 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.9%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:CIPLA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.74
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.736 (1 + (1- 35%) (10.8%))
0.858
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.86
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.858 * 8.6%)
14.93%

Discounted Cash Flow Calculation for NSEI:CIPLA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Cipla is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:CIPLA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 14.93%)
2019 12,224.45 Analyst x11 10,636.62
2020 14,955.40 Analyst x10 11,322.61
2021 16,643.50 Analyst x10 10,963.96
2022 17,760.59 Est @ 6.71% 10,180.15
2023 18,997.32 Est @ 6.96% 9,474.65
2024 20,353.60 Est @ 7.14% 8,832.56
2025 21,831.79 Est @ 7.26% 8,243.44
2026 23,436.15 Est @ 7.35% 7,699.81
2027 25,172.57 Est @ 7.41% 7,196.07
2028 27,048.28 Est @ 7.45% 6,727.93
Present value of next 10 years cash flows ₹91,277.80
NSEI:CIPLA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹27,048.28 × (1 + 7.55%) ÷ (14.93% – 7.55%)
₹394,286.76
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹394,286.76 ÷ (1 + 14.93%)10
₹98,074.07
NSEI:CIPLA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹91,277.80 + ₹98,074.07
₹189,351.87
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹189,351.87 / 805.70
₹235.02
NSEI:CIPLA Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹235.02
Current discount Discount to share price of ₹534.50
= -1 x (₹534.50 - ₹235.02) / ₹235.02
-127.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Cipla is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cipla's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cipla's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:CIPLA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹16.63
NSEI:CIPLA Share Price ** NSEI (2019-03-18) in INR ₹534.5
India Pharmaceuticals Industry PE Ratio Median Figure of 112 Publicly-Listed Pharmaceuticals Companies 19.84x
India Market PE Ratio Median Figure of 2,728 Publicly-Listed Companies 16.54x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cipla.

NSEI:CIPLA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:CIPLA Share Price ÷ EPS (both in INR)

= 534.5 ÷ 16.63

32.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cipla is overvalued based on earnings compared to the IN Pharmaceuticals industry average.
  • Cipla is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Cipla's expected growth come at a high price?
Raw Data
NSEI:CIPLA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 32.14x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts
22.8%per year
India Pharmaceuticals Industry PEG Ratio Median Figure of 32 Publicly-Listed Pharmaceuticals Companies 1.37x
India Market PEG Ratio Median Figure of 596 Publicly-Listed Companies 1.28x

*Line of best fit is calculated by linear regression .

NSEI:CIPLA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 32.14x ÷ 22.8%

1.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cipla is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Cipla's assets?
Raw Data
NSEI:CIPLA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹183.07
NSEI:CIPLA Share Price * NSEI (2019-03-18) in INR ₹534.5
India Pharmaceuticals Industry PB Ratio Median Figure of 133 Publicly-Listed Pharmaceuticals Companies 1.9x
India Market PB Ratio Median Figure of 3,613 Publicly-Listed Companies 1.11x
NSEI:CIPLA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:CIPLA Share Price ÷ Book Value per Share (both in INR)

= 534.5 ÷ 183.07

2.92x

* Primary Listing of Cipla.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cipla is overvalued based on assets compared to the IN Pharmaceuticals industry average.
X
Value checks
We assess Cipla's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. Cipla has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Cipla expected to perform in the next 1 to 3 years based on estimates from 30 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
22.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cipla expected to grow at an attractive rate?
  • Cipla's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Cipla's earnings growth is expected to exceed the India market average.
  • Cipla's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:CIPLA Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:CIPLA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts 22.8%
NSEI:CIPLA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 30 Analysts 12%
India Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 20%
India Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 13.6%
India Market Earnings Growth Rate Market Cap Weighted Average 18.4%
India Market Revenue Growth Rate Market Cap Weighted Average 11.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:CIPLA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:CIPLA Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 203,359 27,046 22,741 23
2020-03-31 181,178 24,017 18,814 28
2019-03-31 161,292 24,096 14,799 27
NSEI:CIPLA Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 155,224 13,391
2018-09-30 154,287 14,074
2018-06-30 154,992 14,530
2018-03-31 150,852 14,628 14,105
2017-12-31 147,618 11,701
2017-09-30 144,951 11,444
2017-06-30 141,637 10,762
2017-03-31 143,340 23,818 10,064
2016-12-31 142,509 11,213
2016-09-30 137,547 10,071
2016-06-30 134,335 12,219
2016-03-31 135,480 17,408 13,600

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cipla's earnings are expected to grow significantly at over 20% yearly.
  • Cipla's revenue is expected to grow by 12% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:CIPLA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below

All data from Cipla Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:CIPLA Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 28.44 41.60 22.30 22.00
2020-03-31 23.37 29.10 18.70 27.00
2019-03-31 18.39 19.70 17.00 21.00
NSEI:CIPLA Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 16.63
2018-09-30 17.49
2018-06-30 18.05
2018-03-31 17.53
2017-12-31 14.54
2017-09-30 14.22
2017-06-30 13.38
2017-03-31 12.52
2016-12-31 13.96
2016-09-30 12.53
2016-06-30 15.21
2016-03-31 16.93

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Cipla is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Cipla's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cipla has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Cipla performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cipla's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Cipla's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Cipla's 1-year earnings growth exceeds its 5-year average (14.4% vs -0.8%)
  • Cipla's earnings growth has not exceeded the IN Pharmaceuticals industry average in the past year (14.4% vs 16.4%).
Earnings and Revenue History
Cipla's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cipla Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:CIPLA Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 155,223.80 13,391.10 35,683.10
2018-09-30 154,286.60 14,074.20 35,077.80
2018-06-30 154,991.70 14,529.60 34,563.80
2018-03-31 150,852.30 14,105.30 34,153.40
2017-12-31 147,617.50 11,701.30 32,973.10
2017-09-30 144,951.20 11,444.00 32,730.20
2017-06-30 141,637.30 10,761.50 32,874.90
2017-03-31 143,339.80 10,063.90 33,011.20
2016-12-31 142,509.40 11,213.40 31,554.40
2016-09-30 137,546.90 10,070.80 31,011.70
2016-06-30 134,335.40 12,219.40 30,088.60
2016-03-31 135,480.30 13,599.90 29,258.30
2015-12-31 135,044.20 16,847.10 39,027.50 1,119.80
2015-09-30 131,633.30 16,693.60 38,219.70 1,119.80
2015-06-30 124,782.10 15,368.00 37,095.70 1,119.80
2015-03-31 113,454.40 11,807.70 23,548.60
2014-12-31 106,194.50 11,818.00 32,155.80 1,058.40
2014-09-30 105,627.10 11,382.60 31,333.10 1,058.40
2014-06-30 104,163.70 11,976.40 30,224.40 1,058.40
2014-03-31 101,733.90 13,884.10 29,546.40 1,058.40
2013-12-31 94,330.20 14,042.10 25,122.10 432.10
2013-09-30 89,509.20 14,602.10 23,641.00 432.10
2013-06-30 86,547.90 15,901.00 22,631.10 432.10
2013-03-31 82,793.30 15,448.50 21,034.10 432.10
2012-03-31 70,207.10 11,442.40 17,534.30 363.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Cipla has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Cipla used its assets less efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
  • Cipla's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Cipla's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cipla has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Cipla's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cipla's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cipla is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cipla's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Cipla's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cipla Company Filings, last reported 2 months ago.

NSEI:CIPLA Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 150,914.50 46,529.70 29,104.20
2018-09-30 150,914.50 46,529.70 29,104.20
2018-06-30 145,816.30 40,980.50 20,612.60
2018-03-31 145,816.30 40,980.50 20,612.60
2017-12-31 136,786.60 47,842.60 26,545.20
2017-09-30 136,786.60 47,842.60 26,545.20
2017-06-30 129,636.50 41,134.80 15,275.50
2017-03-31 129,818.90 41,126.60 14,797.40
2016-12-31 128,084.30 46,929.00 15,829.70
2016-09-30 128,084.30 46,929.00 15,829.70
2016-06-30 121,270.50 52,101.50 14,519.70
2016-03-31 118,663.10 52,102.00 14,430.80
2015-12-31 119,497.70 15,497.60 6,511.70
2015-09-30 119,497.70 15,497.60 6,511.70
2015-06-30 109,819.70 17,524.30 9,542.80
2015-03-31 109,819.70 17,524.30 9,542.80
2014-12-31 106,306.90 19,221.20 16,578.30
2014-09-30 106,306.90 19,221.20 16,578.30
2014-06-30 100,999.30 12,868.60 4,865.90
2014-03-31 100,999.30 12,868.60 4,871.90
2013-12-31 99,572.40 12,438.50 4,670.50
2013-09-30 99,572.40 12,438.50 4,670.50
2013-06-30 90,186.80 10,015.70 22,597.60
2013-03-31 90,186.80 10,015.70 22,597.60
2012-03-31 76,389.30 541.20 10,309.80
  • Cipla's level of debt (30.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (12.5% vs 30.8% today).
  • Debt is well covered by operating cash flow (31.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 16.4x coverage).
X
Financial health checks
We assess Cipla's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cipla has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.56%
Current annual income from Cipla dividends. Estimated to be 0.59% next year.
If you bought ₹2,000 of Cipla shares you are expected to receive ₹11 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Cipla's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • Cipla's dividend is below the markets top 25% of dividend payers in India (1.89%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:CIPLA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below
India Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 69 Stocks 0.7%
India Market Average Dividend Yield Market Cap Weighted Average of 1400 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:CIPLA Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 3.41 21.00
2020-03-31 3.29 23.00
2019-03-31 2.71 22.00
NSEI:CIPLA Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-08-03 3.000 0.530
2017-07-14 2.000 0.341
2016-05-24 2.000 0.361
2015-05-29 2.000 0.330
2014-05-29 2.000 0.349
2013-07-25 2.000 0.498
2013-05-29 2.000 0.512
2012-08-21 2.000 0.512
2011-08-26 2.000 0.638
2010-07-13 2.000 0.619
2010-06-15 2.000 0.591
2009-07-15 2.000 0.650
2009-03-31 2.000 0.838
2009-03-20 2.000 0.959

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Cipla's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (8.1x coverage).
X
Income/ dividend checks
We assess Cipla's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cipla afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cipla has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Umang Vohra
COMPENSATION ₹188,500,000
AGE 47
TENURE AS CEO 2.5 years
CEO Bio

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 since January 7, 2016 until September 1, 2016 and served as its Global Chief Financial Officer since joining in October 2015 until August 1, 2016. As CFO, he successfully integrated Cipla’s acquisitions in the US, thus paving the way for greater avenues of growth for Cipla in North America and revamped Cipla’s operations in Europe as COO thus enabling an improvement in profitability. Through his previous roles in India and the US, he has built a distinguished career with deep understanding and experience in various aspects of the global pharmaceutical business such as finance, generics, sales and marketing, supply chain and operations, among others. Mr. Vohra served as Global Chief Financial & Strategy Officer at Cipla Limited since October 2015. Mr. Vohra was responsible for Strategy, Portfolio, Business Development, Mergers and Acquisitions and Business Technology. He served as the Head of North America Generics Business at Dr. Reddy's Laboratories Ltd. from January 2013 to September 25, 2015 and also served as its Executive Vice President and Member of Management Council until September 25, 2015. He served as the Chief Financial Officer of Dr. Reddy's Laboratories Ltd. from January 2009 to December 31, 2012. He served as the Deputy Chief Financial Officer, Senior Vice President and Vice President at Dr. Reddy's Laboratories Ltd and his elevation has been part of its leadership development and transition programme. Mr. Vohra joined Dr. Reddy's in 2002 from PepsiCo and has been part of several of its key initiatives like Acquisitions, R&D de-risking transactions and operational improvements in Accounting, Governance and Finance processes. He has over 13 years of experience across various finance & corporate development functions. He worked with Eicher Motors. He has been a Director at Cipla Limited since October 1, 2015. He served as a Director of Aurigene Discovery Technologies Limited. Recognised as an action-oriented industry leader, he is a firm believer in the power of agile business models, disruptive technologies, data-driven analytics and a future-ready workforce with a view to making a difference to the lives of patients. Mr. Vohra holds a B.E. in computer engineering and has an MBA with a specialization in Finance from TA Pai Institute of Management (TAPMI).

CEO Compensation
  • Umang's compensation has increased by more than 20% in the past year.
  • Umang's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Cipla management team in years:

2.9
Average Tenure
47
Average Age
  • The tenure for the Cipla management team is about average.
Management Team

Umang Vohra

TITLE
MD, Global CEO & Director
COMPENSATION
₹189M
AGE
47
TENURE
2.5 yrs

Samina Vaziralli

TITLE
Executive Vice Chairperson
COMPENSATION
₹57M
AGE
42
TENURE
3.2 yrs

Kedar Upadhye

TITLE
Global Chief Financial Officer
COMPENSATION
₹25M
AGE
41
TENURE
2.6 yrs

Rajendra Chopra

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹17M
TENURE
2.1 yrs

R. Ananthanarayanan

TITLE
Global Chief Operating Officer
TENURE
1.2 yrs

Alpesh Dalal

TITLE
Head of Investor Relations

Gautam Rohidekar

TITLE
Chief Legal Officer
TENURE
4.4 yrs

Heena Kanal

TITLE
Vice President of Corporate Communications

Prabir Jha

TITLE
Global Chief People Officer
AGE
51
TENURE
3.4 yrs

Chandru Chawla

TITLE
Global Head of CNV
AGE
52
TENURE
5.8 yrs
Board of Directors Tenure

Average tenure and age of the Cipla board of directors in years:

4.6
Average Tenure
63
Average Age
  • The tenure for the Cipla board of directors is about average.
Board of Directors

YK Hamied

TITLE
Non-Executive Chairman
COMPENSATION
₹20M
AGE
82
TENURE
5.9 yrs

Umang Vohra

TITLE
MD, Global CEO & Director
COMPENSATION
₹189M
AGE
47
TENURE
2.5 yrs

Mustafa Hamied

TITLE
Non Executive Vice-Chairman
COMPENSATION
₹21M
AGE
78
TENURE
4.9 yrs

Samina Vaziralli

TITLE
Executive Vice Chairperson
COMPENSATION
₹57M
AGE
42
TENURE
2.5 yrs

Ashok Sinha

TITLE
Non-Executive Independent Director
COMPENSATION
₹5M
AGE
66
TENURE
5.7 yrs

Punita Lal

TITLE
Non-Executive Independent Director
COMPENSATION
₹4M
AGE
55
TENURE
4.3 yrs

Adil Zainulbhai

TITLE
Lead Independent Director
COMPENSATION
₹4M
AGE
65
TENURE
1.6 yrs

S. Radhakrishnan

TITLE
Non-Executive Non Independent Director
COMPENSATION
₹65M
AGE
61
TENURE
7.6 yrs

Peter Mugyenyi

TITLE
Non-Executive Independent Director
COMPENSATION
₹4M
AGE
70
TENURE
5.1 yrs

Naina Lal Kidwai

TITLE
Non-Executive Independent Director
COMPENSATION
₹4M
AGE
61
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • Cipla insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
18. Feb 19 Sell Geena Malhotra Individual 14. Feb 19 14. Feb 19 -35,062 ₹537.81 ₹-18,856,656
11. Jan 19 Sell Prabir Jha Individual 07. Jan 19 09. Jan 19 -24,634 ₹519.76 ₹-12,721,326
31. Dec 18 Sell Nikhil Chopra Individual 27. Dec 18 27. Dec 18 -5,000 ₹515.00 ₹-2,575,000
10. Dec 18 Sell Nikhil Chopra Individual 04. Dec 18 04. Dec 18 -5,000 ₹544.34 ₹-2,721,678
22. Nov 18 Sell Prabir Jha Individual 19. Nov 18 19. Nov 18 -10,000 ₹531.89 ₹-5,318,915
04. Oct 18 Sell Akshay Kejriwal Individual 03. Oct 18 03. Oct 18 -2,300 ₹653.76 ₹-1,503,655
04. Oct 18 Sell Ranjana Pathak Individual 06. Sep 18 06. Sep 18 -11,000 ₹655.84 ₹-7,214,189
11. Sep 18 Sell Manish Gangrade Individual 30. Aug 18 06. Sep 18 -1,690 ₹672.37 ₹-1,114,703
11. Sep 18 Sell Manish Gangrade Individual 04. Sep 18 05. Sep 18 -450 ₹649.72 ₹-291,806
11. Sep 18 Sell Manish Gangrade Individual 30. Aug 18 06. Sep 18 -1,240 ₹672.37 ₹-821,329
22. Aug 18 Sell Nikhil Chopra Individual 17. Aug 18 17. Aug 18 -8,500 ₹652.06 ₹-5,542,500
09. Jul 18 Sell Gayatri Khedekar Individual 03. Jul 18 03. Jul 18 -8,000 ₹625.00 ₹-5,000,000
09. Jul 18 Sell Debashis Sarkar Individual 03. Jul 18 03. Jul 18 -8,500 ₹630.97 ₹-5,363,255
06. Jul 18 Sell Manish Gangrade Individual 02. Jul 18 03. Jul 18 -4,000 ₹633.30 ₹-2,455,897
25. Jun 18 Buy Harish Verma Individual 27. Apr 18 27. Apr 18 2,000 ₹606.57 ₹1,213,140
22. Jun 18 Sell Debashis Sarkar Individual 20. Jun 18 20. Jun 18 -5,000 ₹614.09 ₹-3,070,458
06. Apr 18 Sell Kiran Kalavadia Individual 04. Apr 18 04. Apr 18 -3,000 ₹567.17 ₹-1,701,510
X
Management checks
We assess Cipla's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cipla has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

The Cipla (NSE:CIPLA) Share Price Is Up 37% And Shareholders Are Holding On

But Cipla Limited (NSE:CIPLA) has fallen short of that second goal, with a share price rise of 37% over five years, which is below the market return. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … By glancing at these numbers, we'd posit that the decline in earnings per share is not representative of how the business has changed over the years.

Simply Wall St -

Does Cipla Limited's (NSE:CIPLA) CEO Pay Matter?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Umang Vohra's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Cipla Limited has a market cap of ₹444b, and is paying total annual CEO compensation of ₹189m.

Simply Wall St -

Should We Be Cautious About Cipla Limited's (NSE:CIPLA) ROE Of 8.5%?

This article is for those who would like to learn about Return On Equity (ROE). … Another way to think of that is that for every ₹1 worth of equity in the company, it was able to earn ₹0.085. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Kind Of Investor Owns Most Of Cipla Limited (NSE:CIPLA)?

The big shareholder groups in Cipla Limited (NSE:CIPLA) have power over the company. … Generally speaking, as a company grows, institutions will increase their ownership. … We can zoom in on the different ownership groups, to learn more about CIPLA

Simply Wall St -

Have Insiders Been Selling Cipla Limited (NSE:CIPLA) Shares?

So before you buy or sell Cipla Limited (NSE:CIPLA), you may well want to know whether insiders have been buying or selling. … In the last twelve months, the biggest single sale by an insider was when Ranjana Pathak sold ₹7.2m worth of shares at a price of ₹656 per share. … So we know that an insider sold shares at around the present share price of ₹514.

Simply Wall St -

Want To Invest In Cipla Limited (NSE:CIPLA) Today? Read This First

Cipla Limited (NSE:CIPLA) is considered a high growth stock. … However its last closing price of ₹522.1 left investors wondering whether this growth has already been factored into the share price. … Cipla is poised for extremely high earnings growth in the near future

Simply Wall St -

What Does Cipla Limited's (NSE:CIPLA) P/E Ratio Tell You?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … To keep it practical, we'll show how Cipla Limited's (NSE:CIPLA) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Cipla Limited (NSE:CIPLA) Has A ROE Of 9.9%

Cipla has a ROE of 9.9%, based on the last twelve months. … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.099 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Do Insiders Own Shares In Cipla Limited (NSE:CIPLA)?

The big shareholder groups in Cipla Limited (NSE:CIPLA) have power over the company. … Taking a look at the our data on the ownership groups (below), it's seems that. … Let's take a closer look to see what the different types of shareholder can tell us about CIPLA

Simply Wall St -

Calculating The Fair Value Of Cipla Limited (NSE:CIPLA)

Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of Cipla Limited (NSE:CIPLA) as an investment opportunity. … by taking the foreast future cash flows of the company and discounting them back to today's value. … Discounted Cash Flows (DCF).

Simply Wall St -

Company Info

Description

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 women’s health, cardiovascular, children’s health, dermatology and cosmeceuticals, diabetes, HIV-AIDS, hepatitis, oncology, infectious diseases and critical care, malaria, neurosciences, ophthalmology, osteoporosis, respiratory, and urology. The company also provides inhalation therapy devices comprising metered-dose inhalers, dry powder inhalers, nasal sprays, nebulizers, and inhalation accessory devices, as well as spacers and related devices. In addition, it exports its products to Africa, the Middle East, Latin America, Asia, North America, Australia, New Zealand, Russia, and internationally. Cipla Limited was founded in 1935 and is based in Mumbai, India.

Details
Name: Cipla Limited
CIPLA
Exchange: NSEI
Founded: 1935
₹430,646,141,156
805,699,048
Website: http://www.cipla.com
Address: Cipla Limited
Cipla House,
Peninsula Business Park,
Mumbai,
Maharashtra, 400013,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI CIPLA Equity Shares National Stock Exchange of India IN INR 08. Feb 1995
BSE 500087 Equity Shares Mumbai Stock Exchange IN INR 08. Feb 1995
BDL CIPLA GDR EACH REPR 1 ORD SHS OF INR2 REG'S Bourse de Luxembourg LU USD 03. May 2006
Number of employees
Current staff
Staff numbers
0
Cipla employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 12:46
End of day share price update: 2019/03/18 00:00
Last estimates confirmation: 2019/03/06
Last earnings filing: 2019/02/06
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.