pharma
Cipla
CIPLA · Nifty 50
₹1,350.8
Price 2026-06-17
At a Glance
Fundamental
80/100
STRONG
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
Cipla scores 80/100 on fundamentals (strong). Cipla: PE above historical average. BROAD EXPANSION regime.
Fundamental Score: 80/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 10.9% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 10.89% is moderate margin-driven and stable. Net margin of 14.0% × asset turnover of 0.63x × leverage of 1.2x.
What This Means
Net margin of 14.0% means the company keeps ₹14.0 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.63x means the company efficiently uses its assets to generate revenue. Leverage of 1.2x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
65.6%
Operating
18.4%
Net
14.0%
Gross margin 65.6% → operating margin 18.4% → net margin 14.0%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.
Financial Health
Earnings Quality
ADEQUATECash flow covers net income 1.1x — earnings are ADEQUATE quality. Cash conversion is reasonable.
Debt Sustainability
COMFORTABLEInterest covered 89.3x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.1x is low — balance sheet has capacity.
Free Cash Flow
MODERATEFCF margin at 3.2% — moderate. Generating cash after investments.
Peer Comparison
Cipla is compared against 10 peers in the pharma sector.
Key Watchpoints
Breaks above ₹1418 (+5%)
Trend reversal confirmation
Breaks below ₹1283 (-5%)
Further downside risk
PE reverts to 5Y median of 28.9
Valuation normalization
Pharma sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Profits are from core operations, not one-offs. High quality.
⚠️ 1 critical + 0 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes