Cipla Limited

CIPLA.BO•drug-manufacturers-specialty-generic

Current Price

1,551.85INR

per share

Fair Value

1,167.11INR

Overvalued

33.0%

Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 9.84%, lower than industry average of 12.71%.

Growth Trajectory

Profitability

In the growth phase company makes 23.92% profit on every dollar of sales, higher than industry average of 20.42%.

Profitability Trajectory

Risk Profile

Investors expect at least 7.26% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)

Return on Invested Capital (%)

Financial Health Overview

Enterprise Value

841.82B INR

Equity Value

942.57B INR

FCF Yield

41.74%

Average ROIC

22.32%

Cost of Capital

7.84%

P/E Ratio

24.38x

Financial Metric	Most Recent 12 months (INR)	Previous Year (INR)
Revenues	273.58B INR	254.47B INR
Operating Income or EBIT	70.39B INR	60.43B INR
Interest Expense	401.20M INR	711.30M INR
Book Value Of Equity	311.93B INR	267.06B INR
Book Value Of Debt	4.38B INR	5.59B INR
Cash and Marketable Securities	106.09B INR	77.79B INR
Number of Shares Outstanding	807.62M	--
Minority interests	959M INR	0 INR
Current Stock Price	1551.85 INR	--
Effective Tax Rate	27.00%	--
Marginal Tax Rate	30.00%	--

Performance vs Industry

Revenue Growth

-5.20%

7.50%Company

12.71%Industry

Below Industry

Operating Margin

+5.31%

25.73%Company

20.41%Industry

Above Industry

Cipla Limited demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate

4.65%

Cost of Capital

8.88%

Return on Capital

8.88%

Reinvestment Rate

52.36%

Terminal value represents 63% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

Component	Value	Type
Present Value (Terminal Value)	528.89B INR	Add
Present Value (Cash Flow Over Next 10 Years)	312.92B INR	Add
Value of Operating Assets	841.82B INR	Sub-total
Debt	4.38B INR	Subtract
Minority Interests	959.00M INR	Subtract
Cash	106.09B INR	Add
Value of Equity	942.57B INR	Sub-total
Number of Shares	807.62M shares	Divisor
Estimated Value per Share (Fair Value)	1.16K INR	Total
Current Market Price	1.55K INR	Reference

Financial Projections

Total FCF Present Value

312.92B INR

Avg Revenue Growth

7.13%

Avg Operating Margin

23.51%

Avg ROIC

22.32%

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal Year
REVENUE
Revenue	295.37B INR	324.44B INR	356.36B INR	391.42B INR	429.93B INR	467.77B INR	504.09B INR	537.99B INR	568.59B INR	595.03B INR	622.70B INR
Growth Rate	7.96%	9.83%	9.83%	9.83%	9.83%	8.80%	7.76%	6.72%	5.68%	4.65%	4.65%
PROFITABILITY
Operating Income	76.00B INR	79.56B INR	85.24B INR	91.26B INR	97.65B INR	106.24B INR	114.49B INR	122.19B INR	129.14B INR	135.15B INR	141.43B INR
Operating Margin	25.73%	24.52%	23.92%	23.31%	22.71%	22.71%	22.71%	22.71%	22.71%	22.71%	22.71%
EBIT (1-tax)	55.48B INR	58.08B INR	62.22B INR	66.62B INR	71.28B INR	76.92B INR	82.20B INR	87.00B INR	91.17B INR	94.60B INR	99.00B INR
CASH FLOW
Reinvestment	19.71B INR	21.65B INR	23.78B INR	26.12B INR	25.66B INR	35.78B INR	33.40B INR	30.15B INR	26.05B INR	27.26B INR	51.84B INR
Free Cash Flow	35.76B INR	36.43B INR	38.44B INR	40.50B INR	45.62B INR	41.14B INR	48.80B INR	56.85B INR	65.12B INR	67.34B INR	47.16B INR
Terminal Value	--	--	--	--	--	--	--	--	--	--	1.11T INR
Present Value	33.34B INR	31.66B INR	31.15B INR	30.60B INR	32.13B INR	26.93B INR	29.61B INR	31.87B INR	33.63B INR	31.94B INR	—
EFFICIENCY
ROIC	26.39%	25.26%	24.73%	24.19%	23.64%	23.51%	22.65%	21.95%	21.37%	20.90%	8.88%
Cost of Capital	7.25%	7.25%	7.25%	7.25%	7.25%	7.58%	7.90%	8.23%	8.55%	8.88%	8.88%
Sales/Capital	1.47x	1.47x	1.47x	1.47x	1.47x	1.01x	1.01x	1.01x	1.01x	1.01x	—

Profitability & Efficiency

Operating Margin (%)

ROIC (%)

Value Creation Analysis

ROIC (%)

Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)

Reinvestment (₹B)