₹1403.1
-0.19% today
· 30d +7.35%
as of 2026-11-09
Price · Daily Candles
“Cipla's Profit Sinks 39% as DIIs Step Up, FIIs Pare Holdings”
Cipla's Q1 2027 net profit plunged 39.18% YoY to ₹786 Cr, alongside a 31.1% drop in operating profit, despite a modest 2.33% revenue increase. This dip contrasts with its 3-year net profit CAGR of 11.29%. The stock trades at a TTM P/E of 34.93, above its 52-week low of ₹1165.7 but still 13.23% off its 52-week high of ₹1673.
BULL CASE
+Cipla is considered undervalued with a 64% margin of safety, and an intrinsic value per share of ₹2380.03 against a current price of ₹1451.6.
+The company demonstrates strong profitability with a TTM profit margin of 12.01% and a ROCE of 17.0%.
+ML predictions indicate strong growth potential, with 1-year sales growth ranks of 0.878 (recent 2y), 0.858 (rolling 4y), and 0.801 (stable 7y).
+Domestic Institutional Investors (DIIs) increased their stake by 2.66% QoQ to 34.63% in the June 2026 quarter.
BEAR CASE
−Net profit declined significantly by 39.18% YoY to ₹786 Cr in the quarter ending June 2026.
−Operating profit also saw a sharp decline of 31.1% YoY, with the operating profit margin contracting by 9.08% to 19.14% in Q1 2027.
−Foreign Institutional Investors (FIIs) reduced their holding by 2.35% QoQ, bringing their stake down to 20.21% by June 2026.
−The stock is trading at a TTM P/E of 34.93, which is higher than peers like LUPIN (20.4) and ZYDUSLIFE (22.03).
⟳ What Changed
₹ Latest Earnings · Q ending 2026-09-30
REVENUE
₹7404 Cr
-2.44% YoY
NET PROFIT
₹852 Cr
-37.08% YoY
OPM
20.37%
-7.16pp YoY
EPS
₹10.86
PE 34.93
Intrinsic value · DCF ₹2306.13 · Margin of safety +64.4% (undervalued) · FCF yield 2.07%
◇ Sector Position
Cipla trades at a TTM P/E of 34.93 with a ROCE of 17.0%, positioning it above peers like LUPIN (P/E 20.4, ROCE 27.37%) but below DIVISLAB (P/E 81.85, ROCE 21.47%) in the Drug Manufacturers sector.
PEERPEROCE %
CIPLA34.9317.0
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ML Forward Growth Predictions 🔒
57
SCORE / 100
Overall
6-axis composite of the sections below.
Performance
NEUTRAL
40
Valuation
FAIR
40
Growth
MUTED
48
Profitability
HIGH
78
Technicals
NEUTRAL
58
Risk
LOW
80
Key Stats
TTM PE
34.93
P/B
3.42
52W HIGH
₹1673.0
OFF HIGH
-16.13%
DIV YIELD
0.89%
MKT CAP
₹113247 Cr
◉ Active Signals
MACDBullish8.3494
RSI(14)Bullish65.03
Street Consensus
36 analysts₹1509.08
mean target
Low ₹1170.0Now ₹1403.1High ₹1768.0
⧉ Strategy Fit 🔒