Cipla Ltd.

SECTOR: Pharmaceuticals & Drugs

660.9
₹ 19.45 (3.03%)
Today's High: 665 Today's Low : 644
52 Week High: 658.25 52 Week Low : 356.75
 FinStar
FinStar Indicates the overall health and quality of a stock based on Finology Research.
Ownership Stable
Ownership strength is slightly missing the benchmark.
ValuationFair
The stock’s market price justifies its intrinsic value.
EfficiencyOptimal
The company could improve upon its asset employment.
FinancialsWeak
Watch out! The company might not be able to sustain any adverse condition.

 Company Essentials

Market Cap

53284.35130551 Cr.

P/E

22.99

P/B

3.06

Face Value

₹2

Div. Yield

0.49%

Book Value (TTM)

215.8535

Enterprise Value

53109.79130551 Cr.

CASH

174.56 Cr.

DEBT

0 Cr.

Promoter Holding

36.68%

EPS (TTM)

28.7529

Sales Growth

8.64 %

ROE

12.67 %

ROCE

16.69 %

Profit Growth

28.59 %

No. of Shares

80.6239239 Cr.

Add your own Ratio
* Total debt includes long term borrowing, short term borrowing plus current maturities of long-term borrowing
* Ratios are based on latest Audited Financial Result.

 Price Chart 1w1m3m6m1Yr3Yr5Yr

* Prices are based on daily market changes.

 Valuation Chart 1w1m3m6m1Yr3Yr5Yr

* The chart is based on the standalone earnings of the company.

 Peer Comparison

View Full Peer Comparison
* The Peers list includes companies operating in the same industry and having comparable market cap.

 Sales Growth

1 Year8.64%
3 Year1.17%
5 Year5.52%

 Profit Growth

1 Year28.52%
3 Year8.9%
5 Year6.35%

 ROE

1 Year12.67%
3 Year10.51%
5 Year11.1%

 ROCE

1 Year16.69%
3 Year13.35%
5 Year13.83%

 Debt Equity

0

 Price to Cash Flow

36.3

  Interest Cover Ratio

147.9

 CFO/PAT (5 Yr Avg.)

1.17482139295531

 Share Holding Pattern

 Promoter Pledging %

Date Promoter % Pledge %
Mar 2020 36.68 0
Dec 2019 36.68 0
Sep 2019 36.68 0
Jun 2019 36.7 0
Mar 2019 36.7 0
* Figures given above are % of equity capital

 Strengths

  • The company has significantly decreased its debt by 1745 Cr.
  • Company is virtually debt free.
  • Company has a healthy Interest coverage ratio of 147.9.
  • Company’s PEG ratio is 0.806509036800132.
  • Company has a healthy liquidity position with current ratio of 4.
  • The company has a strong degree of Operating leverage, Average Operating leverage stands at 5.64615358792558.

 Limitations

  • The company has shown a poor profit growth of 8.89757426293698% for the Past 3 years.
  • The company has shown a poor revenue growth of 1.16616530931211% for the Past 3 years.
  • Company has contingent liabilities of 4545.93.

 Quarterly Result (All Figures are in Crores.)

Particulars Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020
Net Sales 3456.53 3229.33 3370.18 2926.2 3133.44
Other Income 94.39 93.41 312.75 73.28 413.41
Total Expenditure 2569.35 2191.73 2602.23 2489.26 2668.64
Operating Profit 981.57 1131.01 1080.7 510.22 878.21
Interest 3.99 7.39 9.87 9.55 9.24
Depreciation 144.62 145.29 150.93 143.14 160.42
Exceptional Items 0 0 0 0 0
Profit Before Tax 832.96 978.33 919.9 357.53 708.55
Tax 198.89 284.33 182.52 75.31 103.98
Profit After Tax 634.07 694 737.38 282.22 604.57

 Profit & Loss (All Figures are in Crores except Adjusted EPS in Rs.)

Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Net Sales 10132 11951 10768 11390 12374
Other Income 148 280 130 335 578
Total Expenditure 8170 9897 9172 9194 9880
Operating Profit 2109 2334 1726 2530 3072
Interest 136 147 39 12 17
Depreciation 433 443 500 530 562
Exceptional Items 0 0 0 -78 0
Profit Before Tax 1540 1744 1187 1911 2493
Tax 359 282 212 443 604
Net Profit 1181 1462 975 1469 1888
Adjusted EPS 15 18 12 18 23

 Balance Sheet (All Figures are in Crores.)

Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Equity and Liabilities
Share Capital 160.59 160.68 160.9 161.02 161.14
Total Reserves 10929.56 11825.2 12639.61 13952.5 15620.77
Borrowings 0.41 0.13 0.07 0 0
Other N/C liabilities 2145.34 298.57 191.27 202.95 268.82
Current liabilities 3566.26 2954.47 2555.83 2731.7 2368.08
Total Liabilities 16802.16 15239.05 15547.68 17048.17 18418.81
Assets
Net Block 3593.62 3826.11 4235.26 4320.03 4127.46
Capital WIP 339 512.81 540.52 435.28 241.32
Investments 4036.99 3716.59 3648.03 3597.56 3865.46
Loans & Advances 2141.54 551.69 624.98 611.43 583.23
Other N/C Assets 132.51 164.48 153.55 145.7 122.69
Current Assets 6558.5 6467.37 6345.34 7938.17 9478.65
Total Assets 16802.16 15239.05 15547.68 17048.17 18418.81
* Other Non-current Liabilities include Net deferred Liabilities

 Cash Flows (All Figures are in Crores.)

Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Profit Before Tax 1539.97 1743.97 1186.94 1911.4 2492.83
Adjustment 551.05 473.89 778.6 315.64 187.6
Working Capital Changes -691.2 -98.83 573.12 -588 -761
Tax Paid -348.41 -390.63 -331.27 -522.51 -451.38
Operating Cash Flow 1051.41 1728.4 2207.39 1116.53 1468.05
Investing Cash Flow -1194.28 -1205.67 -1191.25 -592.16 -1147.05
Financing Cash Flow 179.6 -547 -1010.8 -350.96 -473.32
Net Cash Flow 36.73 -24.27 5.34 173.41 -152.32

 Corporate Actions

 Ratings & Research Reports

 Company Presentations

 Cipla Stock Price Analysis and Quick Research Report

Is Cipla an attractive stock to invest in?

 

The Indian healthcare sector is expected to reach US$ 372 billion by 2022, driven by rising incomes, greater health awareness, lifestyle diseases and increasing access to insurance. Healthcare has become one of India’s largest sectors - both in terms of revenue and employment.

Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance, and medical equipment. The structure of the healthcare delivery system in India consists of three broad segments: Primary care, Secondary care, and Tertiary care.

  • Primary care is the first point of contact between the population and the healthcare service providers. For example, Sub-center (SC), Primary Health Centre (PHC) and Community Health Centre (CHC) which is more relevant to rural areas (PHC’s).
  • Secondary care providers inpatient as well as outpatient medical services and includes simple surgical procedures. For example, District level & Mid-sized hospitals.
  • Tertiary care is the third level of the healthcare delivery system in the country. These hospitals are specialized consultative healthcare infrastructure. For example, Single specialty and Multi-specialty hospitals.

While healthcare services are offered by the public as well as private sectors, in urban as well as rural areas, generally people prefer private hospitals over public hospitals for treatment of diseases, illness, and sickness. So, let’s look into Cipla and its performance over the period of time.

  • Operating cash flow ratio: It measures the adequacy of a company’s cash generated from operating activities to pay off short-term financial obligations. Its cash from the operating activity was Rs 1468.05 Cr.
     
  • Financial Strength: Health care organizations usually have high debt loads and low equity capital in their balance sheet. So, Debt to Equity ratio is important to analyze the company’s sustainability. Cipla has a Debt to Equity ratio of 0 , which is a strong indication for the company.
     
  • EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In Cipla , the EPS growth was 28.5 % which is good for the company.
     
  • Operating profit margin: It determines a company's potential earnings. It assesses how well-managed a company with respect to its basic overhead costs and other operating expenses, Cipla has OPM of 19.1225896668466 % which is a good sign for profitability.
     
  • ROE: Cipla have a average ROE of 12.6743306899534 %. ROE is an important financial parameter for hospitals & health care companies because they expand and grow rapidly. Therefore, ROE measures how efficiently a shareholder's fund is used for generating profits.
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