Cipla Ltd.
NSE: CIPLACipla Ltd.: A 30-second snapshot
Cipla trades at Rs 1,401.3, below its 200-DMA of Rs 1,418.36, after a 2.96% price decline over 12 months and a 15.45% drawdown from its 52-week high. The trailing PE of 29.2 and forward PE of 22.2 reflect a valuation step-down, against a backdrop of 5-year earnings growth of -54.6% and ROE of 11.74% — the company posted its highest-ever full-year revenue of Rs 28,163 crore in FY26 while Q4 net profit fell 55% YoY. Debt-to-equity stands at 1.778, with a falling debt trend and FCF positive in 4 of the measured years.
P/E
29.2
Forward P/E
22.2
ROE
+11.7%
Debt / Equity
1.78
Profit Margin
+13.9%
Div. Yield
+0.9%
5Y ROE > 15%
2/5
5Y FCF > 0
4/5
Quality
46/100
News
8 headlines · 2 positive · 4 negative
Cipla Limited Just Missed EPS By 7.0%: Here's What Analysts Think Will Happen Next - simplywall.st
simplywall.st
Cipla Reports Highest-Ever Annual Revenue of Rs 28,163 Crore in FY26 - Medical Dialogues
Medical Dialogues
Key facts: Cipla Q4 EBITDA INR9.5bn; JPMorgan upgrade; US run‑rate $800–950m; shares up 8% - TradingView
TradingView
Cipla Q4 Results: Net profit plunges 55% to Rs 555 crore as revenue declines, expenses rise; dividend... - Moneycontrol.com
Moneycontrol.com
Cipla Q4 Results: Stock gains after US sales, ex-impairment margins meet expectations - CNBC TV18
CNBC TV18
Recent context
- ·Q4 FY26 results showed a 55% YoY profit decline to Rs 555 crore alongside record annual revenue of Rs 28,163 crore; the divergence was attributed to impairment charges that weighed on the bottom line even as the top line expanded.
- ·JPMorgan upgraded its view on Cipla following Q4 results citing US sales performance and a run-rate of $800–950m; the stock gained 8% on the results day per TradingView reporting.
- ·News sentiment across 8 recent articles skewed negative (4 negative, 2 neutral, 2 positive), with the dominant themes being the EPS miss and the profit plunge, partially offset by record revenue coverage.
Strengths
- +Highest-ever annual revenue of Rs 28,163 crore in FY26, against 5-year revenue growth of -2.1%, implies recent top-line recovery even as the multi-year trend remains subdued.
- +Debt trend is classified as falling, with FCF positive in 4 of the measured years, suggesting the balance sheet is gradually deleveraging despite elevated D/E of 1.778.
- +Current price of Rs 1,401.3 is 7.6% above the 50-DMA of Rs 1,302.98, and 3-month price change of +6.64% reflects near-term relative strength within a longer-term flat to declining trend.
- +US run-rate guidance of $800–950m cited in Q4 analyst coverage represents a quantified top-line anchor for the international generics segment.
Weaknesses
- −5-year earnings growth of -54.6% is a material compression of the profit base; ROE of 11.74% was above 15% in only 2 of the measured years, with a consistency score of 60 out of 100.
- −Q4 FY26 net profit fell 55% YoY to Rs 555 crore on a 7% EPS miss versus analyst estimates, driven by impairment charges — even as full-year revenue reached a record level.
- −Current price remains 1.2% below the 200-DMA of Rs 1,418.36, and the stock is 15.45% below its 52-week high, reflecting 12-month underperformance relative to its own historical range.
- −Composite quality score of 24 ranks Cipla 5th of 6 tracked Pharma peers; Sun Pharma (59), Divi's (51), Apollo Hospitals (44), and Max Healthcare (37) all score materially higher.
Open questions
- ?Does the 55% YoY Q4 profit decline reflect a one-time impairment event or a structural deterioration in Cipla's earnings quality, and how does management distinguish between the two?
- ?How sustainable is the US generics run-rate of $800–950m given the competitive pricing environment, and what proportion of that contributes to margin versus revenue?
- ?With ROE at 11.74% and D/E at 1.778, does Cipla's capital allocation — between R&D, acquisitions, and shareholder returns — explain the multi-year earnings compression or point to other factors?
- ?What would a reclaim of the 200-DMA (Rs 1,418.36) require in terms of earnings trajectory, and does the forward PE of 22.2 already embed the recovery assumptions reflected in JPMorgan's upgrade?
Peer comparison: Pharma
Ranks 5 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| CIPLA | Cipla Ltd.You're viewing | 29.2 | +11.7% | 24 |
| Industry avg | across 5 peers | 51.6 | +15.7% | 43 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 37.2 | +14.7% | 59 |
| DIVISLAB | Divi's Laboratories Ltd. | 68.3 | +16.2% | 51 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 61.4 | +21.5% | 44 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 66.1 | +14.3% | 37 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 24.8 | +11.8% | 22 |
Technical state
Current price
₹1,401.30
SMA 50
₹1,302.98
SMA 200
₹1,418.36
RSI (14)
61.0 (neutral)
From 52w high
-15.4%
1Y return
-3.0%
3M return
+6.6%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- high5-year earnings growth of -54.6% signals severe bottom-line erosion over the medium term. ROE reached above 15% in only 2 of the measured years, and the consistency score of 60 sits below quality benchmarks. Profit margin of 13.94% and ROE of 11.74% are the weakest among measured peers on a quality-score basis.
- highQ4 FY26 net profit fell 55% YoY to Rs 555 crore — a 7% miss versus analyst estimates — driven by impairment charges, even as full-year revenue reached a record Rs 28,163 crore. Four of eight recent news items carry negative sentiment centred on the profit drop and EPS miss.
- mediumCurrent price of Rs 1,401.3 is 1.2% below the 200-DMA of Rs 1,418.36 and has declined 2.96% over 12 months, with a 15.45% drawdown from the 52-week high. The stock has not reclaimed its 200-DMA despite a 6.64% recovery over the past 3 months.
- lowComposite quality score of 24 ranks Cipla 5th of 6 tracked Pharma peers, below Sun Pharma (59), Divi's (51), Apollo Hospitals (44), and Max Healthcare (37). Only Dr. Reddy's (22) is comparably ranked among measured peers.
Cross-section contradictions
- FY26 delivered Cipla's highest-ever annual revenue of Rs 28,163 crore, yet Q4 net profit fell 55% YoY to Rs 555 crore — record top-line and severely compressed bottom-line coexisted in the same reporting period.
- The stock is 7.6% above the 50-DMA (Rs 1,302.98) with RSI at 61, reflecting near-term price recovery, yet it remains below the 200-DMA and is down 2.96% over 12 months — short-term momentum has not reversed the longer-term trend.
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 9 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 6 Jun 2026 · rotates through NIFTY 500 every ~5 days