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Cipla Limited (CIPLA) Fair Value & Analysis

Healthcare · IN · Market cap ₹1.2T

CL Cipla Limited CIPLA · NSE
Price₹1,459
Fair Value₹1,801
Upside+23.5%
Quality55/100
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Mixed Growth
Solidly profitable · 13.9% net margin
Low debt · generates free cash flow
0.90% dividend yield
Mixed vs. peers (8/14)
Moderate moat 58/100
Evidence: High Range ₹1,166 – ₹2,247 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated today

Fair value updated Aug 13, 2026, revised from ₹1,001 to ₹1,801 (+80.0%) since Jul 13, 2026. Share price +1.4% over the past month.

A solid business, screening 23% undervalued on our models.

What matters now

  • Solid quality (55/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (₹1,166 to ₹2,247) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹1,648 ₹825.37 Fair Value ₹1,801 Apr 2021 Aug 2026

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

How to read this chart

60‑month range ₹825.37 – ₹1,648 · fair‑value band ₹1,166 – ₹2,247 · the ₹1,459 price screens below the ₹1,801 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Cipla Limited (CIPLA) currently trades at ₹1,459, while our model-based Fair Value estimate is ₹1,801, implying the stock looks roughly 23.5% undervalued today. The Quality Score stands at 55/100 (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 Aug 13, 2026

Our scenario range runs from ₹1,166 (bear case) to ₹2,247 (bull case); at ₹1,459, 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 12% below its 52-week high and 26% 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 23%, 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.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹537.56 ₹1,108 ₹2,067 80
Residual Income ₹393.65 ₹464.11 ₹988.88 76
Rev-Margin DCF ₹660.60 ₹1,224 ₹2,400 74
All 26 models by family
DCF Models
FCF DCF ₹569.67 ₹911.72 ₹2,030 38
Owner Earnings ₹730.18 ₹1,696 ₹3,814 31
5Y Revenue Exit ₹596.72 ₹1,072 ₹2,072 39
5Y EBITDA Exit ₹752.13 ₹1,387 ₹2,634 41
5Y P/E Exit ₹769.30 ₹1,785 ₹3,182 38
10Y Revenue Exit ₹577.38 ₹1,370 ₹1,910 36
10Y EBITDA Exit ₹718.61 ₹1,713 ₹3,486 37
10Y P/E Exit ₹731.43 ₹1,751 ₹3,459 35
Earnings-Based
Graham-Dodd ₹326.53 ₹2,277 ₹3,196 54
Lynch FV ₹1,176 ₹1,681 ₹2,185 50
PEG = 1.0 ₹1,176 ₹1,681 ₹2,185 46
EPV ₹427.08 ₹500.48 ₹565.73 59
Dividend Discount
Gordon GGM ₹153.89 ₹335.96 ₹565.27 70
DDM Multi-Stage ₹153.89 ₹275.21 ₹350.12 61
Multiples
P/E Multiple ₹792.32 ₹1,056 ₹1,321 63
P/S Multiple ₹612.25 ₹816.33 ₹1,020 58
P/B Multiple ₹612.25 ₹816.33 ₹1,020 55
EV/EBIT ₹755.14 ₹1,003 ₹1,251 53
EV/EBITDA ₹781.24 ₹1,038 ₹1,295 54
EV/Revenue ₹542.15 ₹769.73 ₹997.30 43
Asset-Based
NCAV (Graham) ₹213.11 ₹285.57 ₹426.22 50
Growth DCF
Growth DCF ₹537.56 ₹1,108 ₹2,067 80
Rev-Margin DCF ₹660.60 ₹1,224 ₹2,400 74
Economic Profit
Residual Income ₹393.65 ₹464.11 ₹988.88 76
ROIC Compounder ₹428.38 ₹626.73 ₹834.78 72
Growth Earnings
Growth-Adj P/E ₹1,562 ₹2,231 ₹2,900 68

Widest divergence: Growth Earnings (₹2,231) versus Dividend Discount (₹275.21). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹278B
Revenue growth (YoY) -2.1%
Net margin 13.9%
Return on equity 11.7%
Free cash flow ₹25.3B FY2026
P/E ratio 30.4
More key figures
Operating margin 11.3%
EPS (TTM) ₹47.93
Dividend yield 0.9%
EPS growth (YoY) -54.6%
Net cash ₹6.9B FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 55 · Market factors (momentum, volatility) 58

Profitability 53
Margins and returns on capital today
Quality Growth 13
Are margins and returns improving?
Cashflow 46
Earnings quality: real cash, not paper profit
Fin. Strength 82
Balance sheet, leverage, solvency risk
Investment 49
Disciplined investing over empire-building
Low Volatility 94
Calm price path (market factor)
Momentum 43
Price trend over the last 3–12 months (market factor)
52W Momentum 44
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

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.

Growth Quality 73/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹282B
Latest YoY
+3.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.7%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.1%
Avg. growth/yr (22Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.2%
Revenue +6.7%/yr
FY22 ₹217B
FY23 ₹226B
FY24 ₹255B
FY25 ₹273B
FY26 ₹282B
Net income +11.4%/yr
FY22 ₹25.2B
FY23 ₹28.0B
FY24 ₹41.2B
FY25 ₹52.7B
FY26 ₹38.8B
Character of growth · EPS growth decomposed (2015-2026) +15.7 % p.a.
Revenue per share +8.3 pp

of which total revenue +8.4 pp · buybacks/dilution +0.0 pp

EBIT margin −2.8 pp
Tax rate −0.7 pp
Residual (interest, one-offs) +10.9 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Cipla Limited Fair Value". https://www.fairvalue-calculator.com/stock/CIPLA

Peer Group

Drug Manufacturers - Specialty & Generic · 624 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.

Quality Score 55 · Above median
Fair Value upside +24% · Top 25%
Return on equity (TTM) 12% · Above median
Return on assets 8% · Top 25%
Net margin (TTM) 14% · Top 25%
Operating margin (TTM) 11% · Above median
Revenue growth -2% · Below median
Dividend yield (TTM) 0.9% · Below median
Debt / equity 0.00× · Lower than 75% of peers

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

P/E (TTM) 30.4× · Pricier than median
P/B 3.38× · Pricier than 75% of peers
P/S (TTM) 4.18× · Pricier than 75% of peers
P/FCF 0.5× · Cheaper than median
EV/EBITDA 19.9× · Pricier than 75% of peers

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.

VALUE 65 · sector 6
FUTURE 0 · sector 21
PAST 47 · sector 25
HEALTH 100 · sector 97
DIVIDEND 18 · sector 34

Values & ESG

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

None of the checked exposures detected

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

Similar stocks

10 more Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Jiangsu Hengrui Pharmaceuticals Co 600276 ¥53.76 ¥25.94 -52%
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,944 ₹989.50 -49%
Divi's Laboratories Limited DIVISLAB ₹8,500 ₹1,932 -77%
Torrent Pharmaceuticals Limited TORNTPHARM ₹4,915 ₹1,163 -76%
PharmaEssentia Corporation 6446 1,440 TWD 233.93 TWD -84%
Zydus Lifesciences Limited ZYDUSLIFE ₹1,167 ₹703.32 -40%
Lupin Limited LUPIN ₹2,281 ₹2,477 +9%
Mankind Pharma Limited MANKIND ₹2,433 ₹983.11 -60%
Dr. Reddy's Laboratories Limited DRREDDY ₹1,200 ₹874.79 -27%
Aurobindo Pharma Limited AUROPHARMA ₹1,667 ₹1,340 -20%

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Frequently asked questions

Is Cipla Limited (CIPLA) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹1,801 versus a price of ₹1,459, about +23% (undervalued).
What is the fair value of CIPLA?
Our model-based fair value for Cipla Limited is ₹1,801 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹1,459.
What is the quality score of CIPLA?
Cipla Limited has a Quality Score of 55/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Cipla Limited (CIPLA)?
Cipla Limited reported trailing-twelve-month revenue of about ₹278B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of CIPLA?
The net profit margin of Cipla Limited is about 13.9%, meaning it keeps roughly 13.9% of revenue as net income. Based on the latest reported figures.
Does Cipla Limited pay a dividend?
Cipla Limited currently shows a dividend yield of about 0.93% relative to its recent price (as of Aug 13, 2026).

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.

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