Cipla Ltd.
Pharma · NSE
52-week range
₹1,166 – ₹1,673
From 52w high
-19.5%
RSI (14)
64.4
vs SMA 50 / 200
↑ 50 · ↓ 200
Cipla (₹1,347) trades at a PE of 23.94 against a peer group where multiples range from 19 to 71.9, placing it second-lowest among six tracked pharma peers. The stock is 9.93% lower over 12 months, sits 6.7% below its 200-DMA, and carries a quality score of 30 — last among its peer group. Active USFDA regulatory actions on both a key supplier and the Goa manufacturing plant are the dominant near-term news drivers.
- ✓Debt trend is falling and FCF was positive in 4 of available years, indicating improving capital discipline on the balance sheet side.
- ✓At a PE of 23.94, Cipla trades at a meaningful discount to sector peers SUNPHARMA (40.6x), DIVISLAB (71.9x), MAXHEALTH (69.5x), and APOLLOHOSP (64.6x) — only DR. REDDY at 19.1x is lower.
- ✓USFDA granted first AB-rated generic approval for Albuterol (Ventolin HFA equivalent) in April 2026, expanding the US respiratory portfolio — a concrete regulatory milestone.
- ✓Profit margin of 16.26% is a positive absolute figure in the context of a generics-heavy pharma business, and the 36-analyst coverage (rating 2.63 on a 1–5 scale, lower = more constructive) reflects broad institutional attention.
- ✗5-year earnings growth of -57% is a material contraction signal; combined with zero 5-year revenue growth, the top-line has stagnated while the bottom-line has compressed significantly.
- ✗Quality score of 30 ranks last (6th of 6) among tracked peers, with only 2 years of ROE above 15% in the available history — indicating inconsistent returns on equity capital.
- ✗Two concurrent USFDA compliance actions — a supplier import alert and two Form 483 observations at the Goa plant — represent active regulatory risk to supply chain continuity and product approval timelines.
- ✗Stock has been below its 200-DMA and is down 9.93% over 12 months, with a 19.49% drawdown from the 52-week high, reflecting sustained underperformance relative to its own price history.
- ·On April 24, 2026, CNBC TV18 reported USFDA issued an import alert on a key Cipla supplier, adding supply-chain uncertainty to near-term production planning.
- ·On April 18–19, 2026, Cipla disclosed two Form 483 observations from a USFDA cGMP and pre-approval inspection at its Goa plant — Form 483s require written responses and can affect approval timelines if escalated.
- ·On April 23, 2026, Cipla announced USFDA AB-rated generic approval for Albuterol HFA, the first generic equivalent to Ventolin HFA — a US respiratory portfolio expansion with addressable-market relevance.
- ?Does the -57% five-year earnings contraction reflect a structural shift in Cipla's business mix, one-time write-downs, or competitive pricing pressure in key generics segments — and has management provided a path to earnings recovery?
- ?How material are the two Form 483 Goa plant observations relative to Cipla's US revenue contribution, and what is the historical resolution timeline for similar inspection findings at this facility?
- ?Given that Cipla trades at a PE discount to most sector peers, does the lower multiple reflect a genuine margin-of-safety scenario or does it price in the earnings decline and ongoing regulatory overhangs?
- ?How has the Albuterol HFA approval changed the competitive landscape for Cipla in the US respiratory segment, and what is the size of the addressable market relative to current US revenues?
PE
23.9
Forward PE
24.4
ROE
—
Profit margin
+16.3%
D/E
1.42
Dividend yield
+1.0%
Quality score
30/100
ROE 5y above 15%
2/5 yrs
FCF 5y positive
4/5 yrs
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.Analysis generated 10 May 2026.