Cipla Ltd.
NSE: CIPLACipla Ltd.: A 30-second snapshot
Cipla (₹1,351.8) is an established Indian pharmaceutical company currently trading 4.1% below its 200-DMA after a 10.1% recovery over the past three months. With a trailing PE of 28.2 and a qualityScore of 24 — lowest among the six tracked Pharma peers — the stock reflects compressed profitability metrics alongside a 5-year earnings decline of 54.6%. A forward PE of 21.4 indicates the market is pricing in a meaningful earnings uptick from current levels.
P/E
28.2
Forward P/E
21.4
ROE
+11.7%
Debt / Equity
1.78
Profit Margin
+13.9%
Div. Yield
+1.0%
5Y ROE > 15%
2/5
5Y FCF > 0
4/5
Quality
51/100
News
8 headlines · 3 positive · 1 negative
Cipla appoints Shivam Puri as CEO of 'One India Business' from July 1 - Business Standard
Business Standard
Cipla, Sun Pharma, Dr Reddy's, Glenmark trade lower after Centre tightens cough syrup sales rules - Moneycontrol.com
Moneycontrol.com
Cipla launches India's first sputum inflammometry lab in Mumbai - Indian Pharma Post
Indian Pharma Post
Cipla promoters declare no shares encumbered in FY26 - scanx.trade
scanx.trade
Six business lessons from Cipla's nine-decade journey - Express Pharma
Express Pharma
Recent context
- ·Cipla appointed Shivam Puri as CEO of 'One India Business' effective July 1, 2026, representing a significant leadership transition for the domestic business unit (Business Standard, June 16).
- ·The Centre's tightening of cough-syrup sales rules in June 2026 triggered selling across Cipla and peers including Sun Pharma, Dr. Reddy's, and Glenmark, per Moneycontrol (June 16).
- ·Promoters declared zero share encumbrance for FY26, and the company launched India's first sputum inflammometry lab in Mumbai — both reported in mid-to-late June 2026.
Strengths
- +Debt trend is falling, with D/E at 1.778 — a directional improvement that reduces balance-sheet stress over time.
- +FCF was positive in 4 of the measured years, indicating the business generates cash in most periods despite earnings volatility.
- +Promoters declared zero shares encumbered in FY26, signalling no pledging overhang on insider holdings.
- +Dividend yield of 0.96% provides a modest income return, and the company has sustained dividend payments despite profit-margin pressure.
Weaknesses
- −5-year earnings growth of -54.6% reflects sustained bottom-line compression; ROE of 11.74% cleared the 15% threshold in only 2 of the measured years.
- −QualityScore of 24 is the lowest among 6 tracked Pharma peers, behind Sun Pharma (59), Divi's (51), Apollo Hospitals (44), Max Healthcare (37), and Dr. Reddy's (25).
- −Price remains 4.1% below the 200-DMA of ₹1,408.92 with an 18.44% drawdown from the 52-week high, reflecting sustained longer-term underperformance relative to trend.
- −New government regulations tightening cough-syrup sales (June 2026) introduce revenue risk in a key product category, contributing to sector-wide selling pressure.
Open questions
- ?Does the gap between trailing PE (28.2) and forward PE (21.4) reflect a genuine earnings recovery path, or does it rely on analyst estimates that have historically overshot Cipla's delivered results?
- ?How material is the cough-syrup product category to Cipla's India revenue, and how have prior regulatory actions on specific product lines affected the company's top-line over multi-year periods?
- ?With ROE clearing 15% in only 2 of the measured years, is the current return-on-equity profile structural or cyclical — and what historical conditions corresponded to the years it did exceed that threshold?
- ?What has driven the 5-year revenue CAGR of -2.1% given that Cipla's FY26 was described as a record annual revenue year — and how does the 5-year window align with the reporting base year?
Peer comparison: Pharma
Ranks 6 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| CIPLA | Cipla Ltd.You're viewing | 28.2 | +11.7% | 24 |
| Industry avg | across 5 peers | 54.1 | +15.7% | 43 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 38.5 | +14.7% | 59 |
| DIVISLAB | Divi's Laboratories Ltd. | 70.0 | +16.2% | 51 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 62.9 | +21.5% | 44 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 74.2 | +14.3% | 37 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 24.7 | +11.8% | 25 |
Technical state
Current price
₹1,351.80
SMA 50
₹1,336.53
SMA 200
₹1,408.92
RSI (14)
45.0 (neutral)
From 52w high
-18.4%
1Y return
-8.3%
3M return
+10.1%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- high5-year earnings growth of -54.6% reflects severe cumulative bottom-line erosion. ROE of 11.74% exceeded 15% in only 2 of the measured years (persistence score 60/100), and qualityScore of 24 ranks 6th of 6 tracked Pharma peers — the lowest in the cohort.
- mediumPrice of ₹1,351.8 is 4.1% below the 200-DMA of ₹1,408.92, marking sustained sub-200-DMA positioning. Down 8.28% over 12 months with an 18.44% drawdown from the 52-week high. Stock is above the 50-DMA (₹1,336.53) with a 10.11% 3-month recovery, but has not yet reclaimed the longer-term moving average.
- mediumGovernment tightened cough-syrup sales regulations in June 2026, prompting sector-wide selling in Cipla, Sun Pharma, Dr. Reddy's, and Glenmark. This regulatory action introduces near-term revenue uncertainty for one of Cipla's core product categories.
- low5-year revenue growth of -2.1% indicates flat-to-contracting top-line on a 5-year CAGR basis. Debt-to-equity of 1.778, though in a falling trend, is higher than peers Dr. Reddy's and Sun Pharma on a relative basis.
Cross-section contradictions
- Trailing PE of 28.2 compresses toward a forward PE of 21.4 — a 24% forward discount — suggesting analysts project earnings recovery, yet 5-year earnings CAGR stands at -54.6% and FCF was positive in only 4 of measured years.
- News sentiment is net positive (3 positive vs 1 negative, 4 neutral across 8 items) and promoters disclosed zero share encumbrance in FY26, yet the stock is down 8.28% over 12 months and remains below its 200-DMA.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 21 Jun 2026 · rotates through NIFTY 500 every ~5 days