September 26, 2024
Top 10 Stock Cipla Strong Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Cipla Strong Buy

360 METRICS	September 26, 2024
VALUE
VALUE	57
GROWTH
GROWTH	33
SAFETY
SAFETY	90
SENTIMENT
SENTIMENT	83
360° VIEW
360° VIEW	88

ANALYSIS: With an Obermatt 360° View of 88 (better than 88% compared with alternatives) for 2024, overall professional sentiment and financial characteristics for the stock Cipla are very positive. The 360° View is based on consolidating four consolidated indicators, with half of the indicators below and half above average for Cipla. The consolidated Value Rank has an attractive rank of 57, which means that the share price of Cipla is on the lower side compared with typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 57% of alternative stocks in the same industry. The company is also safely financed with a Safety rank of 90. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 83. But the consolidated Growth Rank has a low rank of 33, which means that the company is below average in terms of growth and momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. 67 of its competitors have better growth. ...read more

RECOMMENDATION: With a consolidated 360° View of 88, Cipla is better positioned than 88% of all alternative stock investment opportunities based on the Obermatt Method. Three out of four consolidated Obermatt Ranks show above-average performance. The stock has as good value (Value Rank of 57), secure financing practices (Safety Rank of 90), and positive market sentiment in the professional investor community (Sentiment Rank of 83). It is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely to occur. The company’s growth expectations are below the industry average (Growth Rank of 33), but that could also be temporary since professional investors remain optimistic despite the low growth numbers. The low price as reflected in the good Value Rank could indicate that the company's future is challenging. The below-par growth performance may be the reason for this. Companies that grow less are typically cheaper than fast-growing competitors. We recommend evaluating whether the future of Cipla is as difficult as the stock’s low price suggests, despite the positive professional investor sentiment. Since the professional community is optimistic, you might have less to worry about, and the stock may just go through a more challenging phase now, indicating good timing. ...read more

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Sentiment Strategy: Professional Market Sentiment for Cipla very positive

SENTIMENT METRICS	September 26, 2024
ANALYST OPINION
ANALYST OPINION	41
OPINIONS CHANGE
OPINIONS CHANGE	66
PRO HOLDINGS
PRO HOLDINGS	95
MARKET PULSE
MARKET PULSE	64
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	83

ANALYSIS: With an Obermatt Sentiment Rank of 83 (better than 83% compared with alternatives) for 2024, overall professional sentiment and engagement for the stock Cipla is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for Cipla. Analyst Opinions are at a rank of 41 (worse than 59% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 66, which indicates a shift in stock research experts opinions for the better. In other words, they are getting more optimistic about stock investments in Cipla. Even better, the Professional Investors rank is 95, meaning that professional investors hold more stock in this company than in 95% of alternative investment opportunities. Pros tend to favor investing in this company. Furthermore, Market Pulse has a rank of 64, which means that the current professional news and professional social networks are upbeat when discussing this company (more positive news than for 64% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 83 (more positive than 83% compared with investment alternatives), Cipla has a reputation among professional investors that is significantly higher than that of its competitors. While analysts are still critical of the company, some are changing their minds. In addition, the professional news channels are optimistic, and many institutional investors have already bought stock in the company. These are encouraging signals, despite the still lower level of analyst recommendations. They may be due to a problematic past, and about to change. The positive sentiment signals are stronger than the negative. ...read more

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Value Strategy: Cipla Stock Price Value better than average

VALUE METRICS	September 26, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	50
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	59
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	56
DIVIDEND YIELD
DIVIDEND YIELD	39
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	57

ANALYSIS: With an Obermatt Value Rank of 57 (better than 57% compared with alternatives), Cipla shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Cipla. Price-to-Sales (P/S) is 50, which means that the stock price compared with what market professionals expect for future sales is lower than for 50% of comparable companies, indicating a good value regarding Cipla's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 59% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 56. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 39% of all competitors have even lower dividend yields than Cipla (a Dividend Yield Rank of 39). 61% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 57, is a buy recommendation based on Cipla's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. ...read more

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Growth Strategy: Cipla Growth Momentum low

GROWTH METRICS	September 26, 2024
REVENUE GROWTH
REVENUE GROWTH	44
PROFIT GROWTH
PROFIT GROWTH	28
CAPITAL GROWTH
CAPITAL GROWTH	34
STOCK RETURNS
STOCK RETURNS	67
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	33

ANALYSIS: With an Obermatt Growth Rank of 33 (better than 33% compared with alternatives), Cipla shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Cipla. Sales Growth has a below market rank of 44, which means that, currently, professionals expect the company to grow less than 56% of its competitors. The same is valid for Capital Growth, with a rank of 34, and Profit Growth, with a rank of 28. Currently, professionals expect the company to grow its profits less than 72% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 67, which means that the stock returns have recently been above 67% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 33, is a hold recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Cipla, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. ...read more

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Safety Strategy: Cipla Debt Financing Safety very solid

SAFETY METRICS	September 26, 2024
LEVERAGE
LEVERAGE	82
REFINANCING
REFINANCING	68
LIQUIDITY
LIQUIDITY	72
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	90

ANALYSIS: With an Obermatt Safety Rank of 90 (better than 90% compared with alternatives) for 2024, the company Cipla has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Cipla is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Cipla. Leverage is at 82, meaning the company has a below-average debt-to-equity ratio. It has less debt than 82% of its competitors. Refinancing is at a rank of 68, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 68% of its competitors. Finally, Liquidity is also good at a rank of 72, which means that the company generates more profit to service its debt than 72% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 90 (better than 90% compared with alternatives), Cipla has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. ...read more

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Combined financial peformance: Cipla Above-Average Financial Performance

COMBINED PERFORMANCE	September 26, 2024
VALUE
VALUE	57
GROWTH
GROWTH	33
SAFETY
SAFETY	72
COMBINED
COMBINED	74

ANALYSIS: With an Obermatt Combined Rank of 74 (better than 74% compared with investment alternatives), Cipla (Pharmaceuticals, India) shares have above-average financial characteristics compared with similar stocks. Shares of Cipla are a good value (attractively priced) with a consolidated Value Rank of 57 (better than 57% of alternatives), are safely financed (Safety Rank of 90, which means low debt burdens), but show below-average growth (Growth Rank of 33). ...read more

RECOMMENDATION: A Combined Rank of 74, is a buy recommendation based on Cipla's financial characteristics. As the company Cipla's key financial metrics exhibit good value (Obermatt Value Rank of 57) but low growth (Obermatt Growth Rank of 33) while being safely financed (Obermatt Safety Rank of 90), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 57% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. ...read more

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