Cipla Ltd.
NSE: CIPLACipla Ltd.: A 30-second snapshot
Cipla trades at Rs 1,393, about 16% below its 52-week high, after Q1 FY27 results (reported July 23, 2026) showed net profit down 39% YoY to roughly Rs 785-789 crore on North America sales weakness and margin compression, even as revenue grew about 3.5%. Trailing PE of 33.87 sits well above the forward PE of 22.25, and the stock carries a mean analyst rating of 2.24 across 37 analysts (1-5 scale, lower = more constructive). Price is currently below both its 50-day and 200-day moving averages, though it is up 7.62% over the trailing three months.
P/E
33.9
Forward P/E
22.3
ROE
—
Debt / Equity
1.78
Profit Margin
+12.0%
Div. Yield
+0.9%
5Y ROE > 15%
2/5
5Y FCF > 0
4/5
Quality
48/100
News
8 headlines · 1 positive · 7 negative
CIPLA: Record Q1 revenue and robust growth in India and North America, with margin guidance maintained - TradingView
TradingView
Cipla Q1 net profit drops 39% to Rs 785.55 crore, North America sales down - Rediff
Rediff
Cipla Q1 profit drops 39% as North America weakness, margin compression overshadow record India sales - Fortune India
Fortune India
Cipla Q1 results: Profit falls 39% YoY to ₹789 crore; revenue climbs 3.50% - livemint.com
livemint.com
Cipla Share Price Falls Over 3% After Q1 FY27 Results Disappoint Investors; Profit Drops 39% - India Infoline
India Infoline
Recent context
- ·Q1 FY27 results released July 23, 2026 showed net profit falling 39% YoY to roughly Rs 785-789 crore, with North America sales down and margin compression cited across multiple sources including Rediff, Fortune India and livemint.com.
- ·Coverage from India Infoline noted the share price fell more than 3% in the session following the results.
- ·Revenue grew approximately 3.5% YoY with 'record' India and North America revenue cited by TradingView, a framing that diverges from the profit-decline emphasis in other coverage of the same results.
Strengths
- +Free cash flow was positive in 4 of the last 5 measured years, and debt-to-equity trend is falling despite an elevated absolute D/E of 1.778.
- +Trailing PE of 33.87 is the 2nd-lowest among 6 tracked Pharma peers, whose PEs range roughly 28.96-75.17.
- +3-month price change of +7.62%, with RSI at a neutral 40.9, neither overbought nor oversold.
- +Mean analyst rating of 2.24 across 37 analysts (1-5 scale, lower = more constructive), reflecting broad sell-side coverage.
Weaknesses
- −5-year earnings growth of -39.2%, corroborated by the Q1 FY27 print showing net profit down 39% YoY on North America sales weakness and margin compression.
- −ROE exceeded 15% in only 2 of the last 5 measured years, and quality score of 28 ranks 5th of 6 tracked Pharma peers.
- −News sentiment is negative in 7 of 8 tracked items, concentrated around the July 23 Q1 results release; coverage diverges, with one source framing the quarter as 'record revenue' while others emphasized the profit decline.
- −Price trades below both its 50-day (Rs 1,410.8) and 200-day (Rs 1,397.69) simple moving averages and is 15.96% below its 52-week high.
Open questions
- ?Does the gap between trailing PE (33.87) and forward PE (22.25) reflect a credible near-term earnings recovery path, or is it a function of a depressed current-year earnings base?
- ?What specifically drove the North America segment weakness and margin compression in Q1 FY27, and does the coverage suggest it is structural or a one-off?
- ?How does the falling debt trend and 4-of-5-year positive free cash flow history weigh against the elevated absolute D/E of 1.778 given typical capital intensity in the Pharma sector?
- ?Given quality score ranks 5th of 6 among tracked Pharma peers, which specific operating metrics (margins, working capital, returns) explain that relative standing?
Peer comparison: Pharma
Ranks 5 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| CIPLA | Cipla Ltd.You're viewing | 33.9 | — | 28 |
| Industry avg | across 5 peers | 56.7 | +15.1% | 38 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 40.5 | +14.7% | 56 |
| DIVISLAB | Divi's Laboratories Ltd. | 75.2 | +16.2% | 51 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 65.4 | +21.5% | 44 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 73.2 | +14.3% | 37 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 29.0 | +8.8% | 4 |
Technical state
Current price
₹1,393.00
SMA 50
₹1,410.80
SMA 200
₹1,397.69
RSI (14)
40.9 (neutral)
From 52w high
-16.0%
1Y return
-4.6%
3M return
+7.6%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- high5-year earnings growth of -39.2% is corroborated by the Q1 FY27 print (reported July 23, 2026) showing net profit down 39% YoY to roughly Rs 785-789 crore, on North America sales weakness and margin compression. ROE exceeded 15% in only 2 of the last 5 measured years, and quality score of 28 ranks 5th of 6 tracked Pharma peers.
- mediumDebt-to-equity of 1.778 is elevated in absolute terms, though the multi-year trend is falling and free cash flow was positive in 4 of the last 5 measured years. 5-year revenue growth is modest at 3.5%.
- mediumNews sentiment is negative in 7 of 8 tracked items, concentrated around the July 23, 2026 Q1 results release. One source (TradingView) framed the same quarter as 'record Q1 revenue... with margin guidance maintained' while four other sources emphasized the 39% profit decline and North America weakness, indicating divergent framing of the same event.
- lowPrice (Rs 1,393) trades below both the 50-day SMA (Rs 1,410.8) and 200-day SMA (Rs 1,397.69), and is 15.96% below its 52-week high, though RSI is neutral at 40.9 and price is up 7.62% over the trailing 3 months.
Cross-section contradictions
- Forward PE (22.25) is roughly 34% below trailing PE (33.87), a gap consistent with an expected earnings recovery, yet 5-year earnings growth is -39.2% and the just-reported Q1 FY27 print shows a continued 39% YoY profit decline rather than a reversal.
- News sentiment is strongly negative (7 of 8 items negative, driven by the Q1 profit miss) and 5-year earnings growth is -39.2%, yet the stock is up 7.62% over the trailing 3 months and down only 4.6% over the trailing year, so price has not moved in lockstep with the deteriorating earnings narrative.
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 24 Jul 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 25 Jul 2026 · rotates through NIFTY 500 every ~5 days