Fact based stock research
Cipla (NSEI:CIPLA)

INE059A01026

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Cipla stock research in summary

cipla.com

ANALYSIS: With an Obermatt Combined Rank of 93 (better than 93% compared with investment alternatives), Cipla (Pharmaceuticals, India) shares have much better financial characteristics than comparable stocks. Shares of Cipla are a good value (attractively priced) with a consolidated Value Rank of 63 (better than 63% of alternatives), are safely financed (Safety Rank of 93, which means low debt burdens), but show below-average growth (Growth Rank of 45). ...read more

RECOMMENDATION: A Combined Rank of 93, is a strong buy recommendation based on Cipla's financial characteristics. As the company Cipla's key financial metrics exhibit good value (Obermatt Value Rank of 63) but low growth (Obermatt Growth Rank of 45) while being safely financed (Obermatt Safety Rank of 93), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 63% 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. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	63
Growth Rank	45
Safety Rank	93
Combined Rank	93

Country	India
Industry	Pharmaceuticals
Index	Low Emissions, Good Governace Growth Markets, Human Rights, Low Waste, Recycling, CNX Nifty 50
Size class	X-Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Cipla

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	44	65	61	63
GROWTH
GROWTH	20	53	51	45
SAFETY
SAFETY	79	57	77	93
SENTIMENT
SENTIMENT	n/a	98	47	^new
360° VIEW
360° VIEW	n/a	91	76	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Cipla is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	44	65	61	63
GROWTH
GROWTH	20	53	51	45
SAFETY
SAFETY	79	57	77	93
COMBINED
COMBINED	79	75	79	93

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Cipla the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 63 (better than 63% 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 55, which means that the stock price compared with what market professionals expect for future sales is lower than for 55% 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 65% 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 47% of all competitors have even lower dividend yields than Cipla (a Dividend Yield Rank of 47). 53% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 63, 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. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	45	65	50	55
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	53	65	64	65
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	23	64	60	56
DIVIDEND YIELD
DIVIDEND YIELD	54	34	34	47
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	44	65	61	63

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Cipla; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 45 (better than 45% 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 39, which means that, currently, professionals expect the company to grow less than 61% of its competitors. The same is valid for Capital Growth, with a rank of 39, and Profit Growth, with a rank of 35. Currently, professionals expect the company to grow its profits less than 65% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 59, which means that the stock returns have recently been above 59% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 45, 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. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	28	23	34	39
PROFIT GROWTH
PROFIT GROWTH	64	58	73	35
CAPITAL GROWTH
CAPITAL GROWTH	n/a	75	57	39
STOCK RETURNS
STOCK RETURNS	58	45	49	59
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	20	53	51	45

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Cipla.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 93 (better than 93% 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 66, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 66% of its competitors. Finally, Liquidity is also good at a rank of 68, which means that the company generates more profit to service its debt than 68% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 93 (better than 93% 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. Investors may not have a debt issue with Cipla but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	46	54	74	82
REFINANCING
REFINANCING	52	78	72	66
LIQUIDITY
LIQUIDITY	100	39	60	68
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	79	57	77	93

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Cipla and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	74	59	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	69	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	80	67	^new
MARKET PULSE
MARKET PULSE	n/a	73	21	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	98	47	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Cipla.
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