Cipla Limited (CIPLA) Fair Value & Analysis

Healthcare · IN · Market cap ₹1.2T

A solid business, screening 22% undervalued on our models.

What matters now

• Solid quality (58/100) at a price below fair value, the discount is the argument here, not the business quality.
• Our model range runs from ₹1,355 (bear) to ₹2,384 (bull), base ₹1,801. The closer the price sits to the lower half, the larger the margin of safety.
• Quality 58/100 (solid quality) with high evidence: the data supports the verdict.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 13, 2026.

How to read this chart

60‑month range ₹825.37 – ₹1,648 · fair‑value band ₹1,355 – ₹2,384 · the ₹1,478 price screens below the ₹1,801 fair value. Dashed = 300-day average. As of Jul 13, 2026.

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Analysis

Cipla Limited (CIPLA) currently trades at ₹1,478, while our model-based Fair Value estimate is ₹1,801, implying the stock looks roughly 21.9% undervalued today. We read business quality at 58/100 (solid quality), in the Healthcare sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Cipla Limited generated revenue of ₹278B at a net margin of 13.9%. Revenue declined 2.1% year over year. It earns a return on equity of 11.7%. The balance sheet holds a net cash position of ₹6.9B. Fundamentals as of Jul 13, 2026

Our scenario range runs from ₹1,355 (bear case) to ₹2,384 (bull case); at ₹1,478, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 11% below its 52-week high and 28% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -49% fair-value upside, at 22%, CIPLA screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Growth Earnings (₹2,166) versus Dividend Discount (₹275.21). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Cipla Limited, together with its subsidiaries, manufactures, develops, sells, and distributes pharmaceutical products in India, the United States, South Africa, and internationally.

Full company description

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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Cipla Limited reported revenue of ₹282B in FY2026 versus ₹217B in FY2022, a compound +6.7%/yr. Reported net income was ₹38.8B in FY2026, compounding +11.4%/yr from FY2022.

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Peer Group

Drug Manufacturers - Specialty & Generic · 625 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.