CIPLA vs DRREDDY
Side-by-side comparison of Cipla Ltd. and Dr. Reddy's Laboratories Ltd.. Descriptive only — not investment advice.
Cipla Ltd.
Pharma
Quality Score: 51/100
Dr. Reddy's Laboratories Ltd.
Pharma
Quality Score: 33/100
At a glance
| Metric | CIPLA | DRREDDY |
|---|---|---|
| Quality Score | 51/100 | 33/100 |
| P/E (trailing) | 35.1 | 30.3 |
| Forward P/E | 23.0 | 20.3 |
| ROE | — | +8.8% |
| Profit margin | +12.0% | +10.0% |
| Debt-to-equity | 1.78 | 18.61 |
| Dividend yield | +0.89% | +0.69% |
| 1Y price return | -1.0% | +1.0% |
| From 52w high | -11.7% | -14.3% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.19 | 2.79 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Cipla trades at Rs 1,463, up 3.12% over the trailing 3 months but down 0.96% over the trailing 1 year, sitting 11.73% below its 52-week high while holding above both the 50-DMA (Rs 1,426.93) and 200-DMA (Rs 1,391.53). Q1 FY27 net profit was reported down about 39% YoY on weaker North America sales, in line with 5-year earnings growth of -39.2%, even as the trailing PE of 35.10 compresses to a forward PE of 23.05.
Dr Reddy's Laboratories trades at Rs 1,205, down 14.29% from its 52-week high and 9.28% lower over the past 3 months, though roughly flat (+0.99%) over the past year. Trailing PE is 30.31 against a forward PE of 20.29, while ROE of 8.84% sits alongside 5-year earnings growth of -68.7% and revenue growth of -5.6%. Tracked news flow over the period skews negative (6 of 8 items), largely tied to a weak Q1 FY27 print.
Pros
- ✓Debt-to-equity of roughly 0.02x (raw metric 1.78, percent-scaled) with a 'falling' debt trend per the persistence data and free cash flow positive in 4 of the last 5 tracked years.
- ✓Forward PE of 23.05 compares to a trailing PE of 35.10, a roughly 34% compression.
- ✓Mean analyst rating of 2.19 across 36 analysts (1-5 scale, lower = more constructive).
- ✓Price trades above both the 50-DMA (Rs 1,426.93) and 200-DMA (Rs 1,391.53), with RSI at a neutral 55.74, and trailing PE ranks 2nd-lowest among 6 tracked Pharma peers.
- ✓Trailing PE of 30.31 is the lowest among tracked Pharma peers (Cipla 35.10, Sun Pharma 38.56, Apollo Hospitals 65.03, Max Healthcare 70.51, Divi's Labs 88.34), ranking 1 of 6 on this metric.
- ✓Forward PE of 20.29 is about 33% below the trailing PE, reflecting a different earnings base than the trailing-twelve-month figure.
- ✓Free cash flow was positive in 4 of the tracked years per the persistence data.
- ✓Dividend yield of 0.69% has been maintained alongside the reported revenue and earnings contraction.
Cons
- ✗5-year earnings growth of -39.2%, echoed in Q1 FY27 net profit reported down about 39% YoY to roughly Rs 785-789 crore on weaker North America sales.
- ✗ROE exceeded 15% in only 2 of the last 5 tracked years; profit margin stands at 12.01%.
- ✗Quality score of 28 ranks 5th of 6 tracked Pharma peers; 5-year revenue growth has been muted at 3.5%.
- ✗News sentiment across 8 tracked items skews negative (5 negative, 2 positive, 1 neutral), concentrated around the Q1 FY27 results.
- ✗5-year earnings growth of -68.7% and 5-year revenue growth of -5.6% mark sustained top- and bottom-line contraction; ROE of 8.84% met the 15% threshold in only 3 of the tracked years and the consistency score is 40/100.
- ✗Quality score of 4 ranks last (6 of 6) among tracked Pharma peers, whose scores range 28-57.
- ✗Price sits below both the 50-DMA (Rs 1,247.01) and 200-DMA (Rs 1,252.45), down 14.29% from the 52-week high.
- ✗Tracked news sentiment is negative (6 of 8 items), concentrated around a Q1 FY27 profit decline of roughly two-thirds YoY and an EPS miss of about 29%.
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