Cipla (CIPLA)

FairStock Score: 61/100 — STEADY

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear two hats: Buffett’s quality lens and Graham’s margin-of-safety lens. Cipla at ₹1,450 and ₹1.17 lakh Cr market cap is a large-cap pharma stalwart. Its balance sheet is clean: debt/equity 0.02, ROCE 22.72%, ROE 14.57%, FCF ₹1,323 Cr, Altman Z 3.90, Piotroski 7/9. That combination suggests a durable business that earns well and can survive stress. The latest quarter had sales of ₹7,074 Cr and net profit of ₹674 Cr. But growth is the weak spot: sales growth 0.06% and profit growth -33.84%, even though 5-year revenue CAGR is 9.97%. A stalwart should compound steadily; this looks temporarily stalled. The moat? High ROCE and almost no debt hint at some competitive advantage, but weak current growth makes me question pricing power. Valuation is not Graham’s friend: P/E 34.72, P/B 3.40, Graham Number ₹699.53, and margin of safety -92.73%. The given DCF intrinsic value of ₹16.73 also says the price is far above conservative value. EV/EBITDA 9.57 and dividend yield 0.90% do not provide enough comfort. FairStock Score 61/100 STEADY. I like the fortress balance sheet and cash generation. I dislike paying a premium P/E for negative profit growth and no margin of safety. This is a quality watchlist candidate, not a bargain. Wait for profit recovery, sales acceleration, or a wider discount before calling it a value buy. In short: quality without a bargain price.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer