pharma · CIPLA
Cipla
Cipla: PE above historical average. NARROW LEADERSHIP regime. sector leading.
Price
₹1,466.4
Price 2026-07-30
5 day
+3.96%
Short-term move
1 month
+0.07%
Medium-term
Regime
NARROW LEADERSHIP
62% confidence
Market cap
₹117.3k Cr
inflow sector flow
Market Intelligence Analyst
Understand today's market in about 2 minutes.
“How does today's NARROW LEADERSHIP regime affect Cipla (CIPLA) in the pharma sector?”
Price chart
₹1,445
-4.07% over period
About Cipla
Cipla Limited, together with its subsidiaries, manufactures, develops, sells, and distributes pharmaceutical products in India, the United States, South Africa, and internationally. It offers generic and branded generic medicines, vaccines, active pharmaceutical ingredients, and formulations for various therapeutic areas, such as MI, angina, heart disease, pulmonary disease, kidney disorders, alzheimer's disease, hypertension, arrhythmia, lipid abnormalities and diabetes, obesity, central nervous system, HIV/AIDS, respiratory, asthma, urology, oncology, cardio-metabolism, child health, infectious diseases and critical care, hepatitis, women's health, ophthalmology, and neuro psychiatry. The company is also involved in the consumer healthcare, biosimilars, and specialty businesses. Cipla Limited was incorporated in 1935 and is based in Mumbai, India.
At a Glance
RSI pattern warning
RSI oversold bounces for this stock succeeded only 0% of the time (avg -7.1% over 14 days) — not a reliable pattern.
52-week position
Trading at 87.7% of 52-week high
Technicals
RSI 14
56.5
Trend
uptrend
50 DMA
Above
200 DMA
Above
Key metrics
P/E ratio
30.3
43th pct · 7 quarterly points (limited history)
P/B
3.4
ROE
11.7%
Moderate profitability — 11.7% ROE
Market cap
₹117.3k Cr
Revenue growth
-210.0% YoY
Promoter
31.1%
52-week range
₹1,165.7 – ₹1,673
87.7% of high
RSI (14)
56.5
uptrend
vs 50 DMA
Above
DMA ₹1,415.55
Fundamental
75/100
STRONG
Trust
95/100
Verification
Coverage
100/100
HIGH
Quick Take
Cipla scores 75/100 on fundamentals (strong). Cipla: PE above historical average. NARROW LEADERSHIP regime. sector leading.
Fundamental Score: 75/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 9.6% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 9.63% is modest margin-driven and stable. Net margin 12.1%, asset turnover 0.64x, leverage 1.2x.
What This Means
Net margin of 12.1% means the company keeps ₹12.1 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.64x 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
64.5%
Operating
16.5%
Net
12.1%
Gross margin 64.5% → operating margin 16.5% → net margin 12.1%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
ADEQUATECash flow covers net income 1.2x — earnings are ADEQUATE quality. Cash conversion is reasonable.
Debt Sustainability
COMFORTABLEInterest covered 77.4x — 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 3.1% — moderate. Generating cash after investments.
Peer comparison
| Stock | Price | 5D | P/E | ROE | Rev growth | Mcap |
|---|---|---|---|---|---|---|
| DIVISLAB Divi's Laboratories | ₹7,835 | +7.7% | 70 | 16.2% | 950% | ₹1.8L Cr |
| DRREDDY Dr. Reddy's Laboratories | ₹1,144.8 | -1.8% | 26.5 | 11.8% | -1160% | ₹1.1L Cr |
| AUROPHARMA Aurobindo Pharma | ₹1,576.3 | +3.5% | 26.3 | 9.9% | 560% | ₹91.1k Cr |
| ALKEM Alkem Laboratories | ₹5,816.5 | +3.8% | 29.4 | 17.6% | 1460% | ₹67.8k Cr |
| BIOCON Biocon | ₹425.35 | -2.3% | 145.3 | 1.1% | 230% | ₹66.3k Cr |
| GLENMARK Glenmark Pharmaceuticals | ₹2,190.3 | -0.7% | 47 | 14.1% | 1430% | ₹63.9k Cr |
| GLAND Gland Pharma | ₹2,517 | +5.9% | 40.9 | 10.5% | 2230% | ₹42.1k Cr |
| JBCHEPHARM J B Chemicals | ₹2,408.9 | +0.0% | 54.5 | 18.7% | -480% | ₹38.9k Cr |
| CIPLA Cipla | ₹1,466.4 | +5.3% | 30.2 | 11.7% | -210% | ₹1.2L Cr |
Tensions to watch
Promoter holding at 31.1% — neither distress selling nor aggressive buying
No strong insider signal. Watch for changes in promoter stake as a leading indicator.
Key Watchpoints
Breaks above ₹1540 (+5%)
Trend reversal confirmation
Breaks below ₹1393 (-5%)
Further downside risk
PE reverts to median of 30.2 (7 quarterly points (limited history))
Valuation normalization
Pharma sector holding leadership position
Sector momentum continuing
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Special charges of ₹372K Cr. May indicate restructuring, impairment, or one-time costs.
Profits are from core operations, not one-offs. High quality.
⚠️ 1 critical + 1 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes
