Cipla Limited (CIPLA.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+112.4%

₹2,939.74

vs ₹1,384.10 price

Levered DCF

₹2,286.76

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

9.92

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	25.49×	22.12×	29.36×	25.94×	32.63×	27.33×	22.03×	27.71×
P/B	2.87×	3.74×	4.53×	3.1×	3.94×	3.59×	2.16×	2.82×
P/S	3.51×	4.28×	4.74×	3.22×	3.78×	3.44×	2×	2.59×
EV / EBITDA	15.19×	16.36×	19.23×	14.49×	18.12×	15.75×	11.06×	14.71×
Gross margin	42.7%	66.4%	64.6%	62.5%	60.0%	60.7%	64.0%	63.7%
Operating margin	16.7%	38.5%	37.1%	34.6%	37.2%	38.5%	39.3%	38.6%
Net margin	13.8%	19.3%	16.1%	12.4%	11.6%	12.6%	9.1%	9.4%
Current ratio	3.44×	4.25×	3.71×	3.38×	2.99×	2.88×	2.66×	3.29×
Debt / equity	0.02×	0.01×	0.02×	0.03×	0.05×	0.11×	0.2×	0.29×
Interest coverage	86.67×	169.34×	120.74×	71.17×	88.69×	50.46×	35.38×	37.36×
Dividend yield	1.3%	0.9%	0.6%	0.6%	0.5%	0.0%	1.7%	0.6%
Payout ratio	33.3%	19.9%	16.6%	14.4%	16.0%	0.0%	36.5%	15.8%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	11.3%	16.9%	15.4%	12.0%	12.1%	13.1%	9.8%	10.2%
Return on invested capital	9.8%	25.4%	24.8%	21.9%	26.1%	25.3%	23.8%	22.0%
Return on assets	9.1%	14.1%	12.6%	9.5%	9.3%	9.6%	6.5%	6.4%
Free cash flow yield	2.6%	3.3%	2.3%	2.8%	3.2%	4.5%	6.1%	2.7%
Earnings yield	3.9%	4.5%	3.4%	3.9%	3.1%	3.7%	4.5%	3.6%
Enterprise value	₹984.7B	₹1.2T	₹1.2T	₹728.5B	₹825B	₹669.6B	₹364.5B	₹461.4B
Net debt / EBITDA	-0.06×	-0.02×	-0.01×	0.03×	0.08×	0.29×	0.72×	1.21×
Cash conversion cycle (days)	154	185	180	179	177	192	208	217