Cipla is a leading global pharmaceutical company manufactures metered dose inhalers, dry powder inhalers, nasal sprays, nebulizers and a range of inhaled accessory devices. The Company’s geographical segments include India, USA, South Africa and Rest of the World.

                                 Stock Details

Market Cap. (Cr.) 65500.72
Face Value 2.00
Equity (Cr.) 161.29
52 Wk. high/low 878.50/356.75
BSE Code   500087
Book Value (Rs) 211.74
Industry Pharmaceuticals
P/E 29.22


                        Share Holding Pattern %


FIIs 23.00
Institutions 17.92
Non Promoter Corp. 5.57
Public & Others




Total 100.00


Price Chart

Source: Capitaline Corporate Database, EWL Research

Key Investment Rationale:

  • Cipla’s Respiratory products demand double-digit market share. As per IQVIA October-December ’20 quarter Cipla continued to deliver market-beating growth in Respiratory where it registered 14% growth versus the minus 4% in the market, Urology 8% versus a 7% and Derma 15% versus 8%.

  • Cipla India business, which include the branded prescription, trade generics and consumer health businesses grew by 22% YoY with strong growth across the three businesses. The prescription business grew by 25% on a YoY basis led by covid-19 portfolio and healthy traction in respiratory therapies.

  • North America business grew by 6% year on year in Q3FY21 led by continued expansion in market share (14%) of Albuterol and other assets along with growth in the institutional channel. The emerging market business grew by 46% on a YoY led by continued demand across all regions.

  • S. which contributes 23% to toal revneue of cipla will be next leg of growth for the company led by the launch of one inhalation product each year, further ramp-up of gAlbuterol, launch of gRevlimidc (cancer drug)  in FY23E and approval of Tramadol IV (painkiller).

  • Cipla reported EBITDA margin of 24.8% for the December quarter, which is the highest ever reported EBITDA for the company in the recent history

  • COVID products contribution in total revenue  is lower than 5%. But it’s probably going to be much lower going forward. Growth in non-COVID products portion in India is about 7% and many therapies outside COVID have seen growth coming back now.


Cipla has leadership positions across respiratory and urology segments, and have fifth rank in cardiology in India. Cipla’s greater access to cost-effective medicines and treatment options positively impacts healthcare outcomes. With  the good reseponse from Albuteral product Cipla plans to file for more respiratory products in the US. Besides, the target action date is approaching for the approval of its much-awaited generic Advair inhaler. Albuterol has a market size of about $900 million annually. The market for Advair inhaler generics is much larger than Albuterol. The consumer health business accounts for 5-6 percent of Cipla’s overall turnover which it  aims to take beyond 12 per cent in the next five years. Other product launches and approvals are also continuing to accrue benefits. Cipla expects one niche launch per quarter starting Q1FY22 (at least $15-$20 million per annum opportunity with each launch). On performance front we expect company to report EPS of Rs.39.7 for FY22E, at CMP of Rs.808 PE works out to be 22.2x. Hence, investors can buy the stock at CMP of Rs.808 for target price of Rs.980. Time frame should be 9-12months.

Source: Livemint, EWL Research,Company

Key Threapy Areas :

Respiratory :

According to the IQVIA report (Mar 2020), Cipla is the second largest inhaler selling company by volume and four of respiratory brands are listed among the Top 50 medicine brands in the country. Wide range of drug-device combinations have established Cipla’s position as a lung leader in India and other key emerging markets.

Market Share of Respiratory therapy in India of Cipla is at 25.4%

The Company manufactures metered dose inhalers, dry powder inhalers, nasal sprays, nebulizers and a range of inhaled accessory devices.

  1. Asthma and chronic obstructive pulmonary disorder (COPD).

Asthma and COPD are both chronic lung diseases. COPD is mainly due to damage caused by smoking, while asthma is due to an inflammatory reaction.

‘Breathe-free’ is an initiative by Cipla to counsel asthmatic and COPD patients on the management of this disease

With Niveol,

Cipla address an unmet need associated with obstructive airway diseases (OAD) such as asthma and chronic obstructive pulmonary disorder (COPD).

  1. Nebulization

Cipla was the first to produce aerosol nebulisers for respiratory disease in the mid-1970s


In 2001, in the global fight against the HIV/AIDS pandemic, Cipla developed the world’s first triple anti-retroviral drug combination, Triomune and offered it at below USD 1 per day

At the end of 2019, out of 38 million people living with HIV/AIDS globally, 25.4 million people (67%) have had access to antiretroviral as APIs therapy (ART) and nearly 80% of the world’s antiretroviral drugs are supplied from India.


Cipla was the first company in India to introduce the drugs Vincristin and Vinblastine in the year 1984.

Since 1984, it  has extended  anti-cancer portfolio and now have more than 32 drugs (57 SKU) to treat various types of cancer

Cipla Generics

Generics caters to Over 26 therapeutic categories that include 150+ brands and 11+ different dosage forms.


API pipeline consists of 75+ complex developments in the therapy areas of Oncology, Hep C, ARV, Diabetology, CVS, CNS, Respiratory etc.

Cipla COVID – 19 Products

COVID Prpducts of the company includes Cipremi® Remdesivir Ciplenza® Favipiravir Actemra® Tocilizumab  CIPHANDS® Sanitizer range.



Indian Pharmaceutical Industry

India enjoys an important position in the global pharmaceuticals sector. The country also has a large pool of scientists and engineers with a potential to steer the industry ahead to greater heights. Presently, over 80% of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.

The US pharmaceutical market continues to be the top export destination for Indian pharmaceutical companies. Over the years, Indian pharma companies have adopted the strategy of pruning R&D pipelines to focus on complex formulations where competition and pricing pressures are limited.

The global pharmaceutical drug delivery market is projected to reach USD 2,015.3 billion by 2025 from USD 1,430.5 billion in 2020 to grow  at a CAGR of 7.1% during the forecast period 2020-2025

In 2019, North America accounted for the largest share of the pharmaceutical drug delivery market. The large share of the North American market is due to factors such as the rising prevalence of chronic diseases such as cancer, respiratory allergies, and diabetes; growth in biologics in the pharmaceuticals market

Cipla is the 3rd-largest pharmaceutical player in South Africa. The Company has a strong presence in both the private and tender markets in the country. Top three therapies and market share of Cipla in Europe are – CNS (10.2%), Respiratory (12.6%) Alimentary tract & metabolism (5.1%)

Source: globenewswire,Annual Report,Company

Q3FY21 Financial Performance – Consolidated

Particulars in Rs. Cr. 202012 202009 201912 QoQ YoY
Revenue from Operations 5154.17 4972.58 4234.55 4% 22%
Other Operating Income 14.52 65.71 136.45 -78% -89%
Total Revenue from Operations 5168.69 5038.29 4371 3% 18%
Other Income 86.94 53.47 72.13 63% 21%
Total Income 5255.63 5091.76 4443.13 3% 18%
Raw Material Consumed 1353.34 1300.52 1034.39 4% 31%
Stock Adjustment 35.64 -144.1 38.71 -125% -8%
Purchase of Finished Goods 604.5 790.12 571.87 -23% 6%
Employee Expenses 844.36 820.87 745.51 3% 13%
Other Expenses 1099.97 1094.31 1222.19 1% -10%
Total Expenditure 3937.81 3861.72 3612.67 2% 9%
PBIDT 1317.82 1230.04 830.46 7% 59%
Interest 47.92 39.33 46.17 22% 4%
PBDT 1269.9 1190.71 784.29 7% 62%
Depreciation 248.43 265.06 277.89 -6% -11%
PBT 1021.47 925.65 506.4 10% 102%
Tax 260.42 332.84 114.21 -22% 128%
Deferred Tax 8.54 -69.04 38.61 -112% -78%
Profit After Tax 752.51 661.85 353.58 14% 113%
EPS in Rs. 9.28 8.25 4.35 12% 113%
PBIDTM(%) 25.57 24.74 19.61 83 bps 596 bps
PATM(%) 14.6 13.31 8.35 129 bps 625 bps


Balance Sheet

Partiiculars in Rs. Cr. H1FY21 FY20 FY19
      Share Capital 161.27 161.25 161.14
      Reserves & Surplus 16915.09 15601.75 14851.14
      Shareholders Fund 17076.36 15763 15012.28
      Minority Interest 258.9 294.28 331.97
      Total Non Current Liabilities 3106.42 3212.14 4847.56
       – Long Term Borrowings 2340.85 2369.28 3830.07
       – Deferred Tax Liabilities(Net) 306.09 365.21 425.32
       – Other Long Term Liabilities 323.14 344.38 470.76
       – Long Term Provisions 136.34 133.27 121.41
      Total Current Liabilities 4966.14 4393.14 3771.51
       – Short Term Borrowings 828.45 447.15 486.16
       – Trade Payables 2362.81 2281.81 1947.99
       – Other Current Liabilities 799.95 715.99 600.6
       – Short Term Provisions 974.93 948.19 736.76
Total Equity and Liabilities 25407.82 23662.56 23963.32
      Total Non Current Assets 11652.79 11956.38 11536.69
       – Fixed Assets(incl. Capital Work in Progress) 7303.66 7573.42 7415.4
         -Tangible Assets 4986.87 5252.35 5176.2
         -Intangible Assets 4360.63 4430.54 1563.02
         -Intangible Assets under Development/R&D 395.54 403.53 345.13
         -Capital Work in Progress 469.86 421 331.05
       – Goodwill on Consolidation 2909.24 2934 2869.14
       – Non Current Investments 442.89 454.5 193.86
       – Deferred Tax Asset(Net) 273.18 239.77 201.41
       – Long Term Loans & Advances 99.14 94.43 142.63
       – Other Non Current Assets 624.68 660.26 714.25
       Total Current Assets 13725.52 11703.84 12424.63
       – Current Investments 2599.81 1016.52 2125.79
       – Inventories 4950.28 4377.6 3964.83
       – Trade Receivables 3693.92 3891.31 4150.72
       – Cash & Cash Equivalents 1035.1 1003.91 618.81
       – Short Term Loans & Advances 3.38 5.6 6.28
       – Other Current Assets 1443.03 1408.9 1558.2
      Other Assets 29.51 2.34 2
Total Assets 25407.82 23662.56 23963.32


Cash Flow Statement

Particulars in Rs.     202009     202003     201903 201803
Cash and Cash Equivalents at Beginning of the year 742.38 508.36 853.46 610.35
Net Cash from Operating Activities 1587.44 3068.45 1691.15 1462.76
Net Cash Used in Investing Activities -1963.69 114.39 -1687.53 -834.17
Net Cash Used in Financing Activities 274.04 -2948.82 -348.72 -385.48
Net Inc/(Dec) in Cash and Cash Equivalent -102.21 234.02 -345.1 243.11
Cash and Cash Equivalents at End of the year 637.64 742.38 508.36 853.46


Key Financial Ratios

Key Financial Ratios
Particulars H1FY21 FY20 FY19 FY18
Debt to Equity Ratio 0.19 0.18 0.29 0.33
Current Ratio 2.76 2.66 3.29 2.82
Return on Equity (%) 9.81 10.17 9.91
Return on Capital Employed (%) 11.13 9.78 7.82
Interest Coverage Ratio 26.00 12.04 13.34 15.61
Operating Profit Margin (%) 19.05 13.87 13.35 11.45
Net Profit Margin (%) 13.14 9.03 9.23 9.33
Net Debt to Equity (0.05) 0.05 0.10 0.14



  • Cipla’s total revenue from operations rose 18% YoY to 5,169 crore in December Quarter. The consolidated operating profit increased 69% YoY to Rs. 1,281 crore during the December quarter.
  • During FY 2019-20, strong cash flow generation enabled the Company to prepay long-term debt by Rs. 1,939 crores leading to improvement in the Net Debt to Equity ratio to 0.05 (FY 2018-19: 0.10 ) and Net Debt to EBITDA ratio to 0.25 (FY 2018-19: 0.50).
  • In FY 2019-20, overall cash flow further strengthened, which reflected in cash flow from operations growing to 3068 crores from Rs. 1,691 crores in FY 2018-19 and free cash flow growing to Rs. 1,955 crores from Rs. 1,043 crores in FY 2018-19.
  • Cipla has efficiently allocated resources across the business to deliver long-term growth and value to its shareholders. Over the years, the Company has maintained a Return on Equity (RoE) of 10%
  • Net Profit Margin of the company improved to 19.05% in H1FY21 from 13.87% in FY20
  • The company is maintaing healthy Interest coverage ratio.

Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.
For analyst certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)
Disclosure Appendix
Analyst Certification (For Reports)
Israil Khan, Elite Wealth Advisors Limited,
The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Advisors Limited.
As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:
(1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and
(2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.
For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
Research Excerpts
This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit
Company-Specific Disclosures
Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting, or e-mailing with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail
Options related research:
If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at
Other Disclosures
All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.
Ownership and material conflicts of interest Disclosure
Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Advisors Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, advisory board member or employee of any company in the analyst’s area of coverage.
Country Specific Disclosures
India – For private circulation only, not for sale.
Legal Entities Disclosures
Mr. RavinderParkash Seth is the Managing Director of Elite Wealth Advisors Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone:011-43035555, Facsimile: 011-22795783 and Website:
EWL Advisory discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:
1. Reports
a) EWL Advisory or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
(b) EWL Advisory or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;
(c) EWL Advisory or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;
2. Compensation
(a) EWL Advisory or its associates have not received any compensation from the subject company in the past twelve months;
(b) EWL Advisory or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
(c) EWL Advisory or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(d) EWL Advisory or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(e) EWL Advisory or its associates have not received any compensation or other benefits from the subject company or third party in connection with the research report.
3 In respect of Public Appearances
(a) EWL Advisory or its associates have not received any compensation from the subject company in the past twelve months;
(b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL Advisory
Provided that research analyst or research entity shall not be required to make a disclosure as per sub-clauses (c), (d) and (e) of clause (ii) or sub-clauses (a) and (b) of clause (iii) to the extent such disclosure would reveal material non-public information regarding specific potential future investment banking or merchant banking or brokerage services transactions of the subject company.
(4) EWL Advisory or its proprietor has never served as an officer, director or employee of the subject company;
(5) EWL Advisory has never been engaged in market making activity for the subject company;
(6) EWL Advisory shall provide all other disclosures in research report and public appearance as specified by the Board under any other regulations.