Healthcare · Drug Manufacturers - Specialty & Generic · NSE · India
₹1338.00+0.53%
Market cap ₹1.08TNext earnings 2026-10-27Updated Oct 24, 2026 · valuation updating
Our verdict
No fair value
We are missing the financial data our models need for this company. It will appear once the data arrives.
Not valued: there are no financial statements on file yet.
ACCE opinionCipla Limited (CIPLA.NS)
Fair value
Not available
ACCE price target
₹1394
Rating
Not rated
Horizon
12 months
ACCE price target published on 22 Oct 2026, 16:00 CEST.
Price used: ₹1338 at the close on 23 Oct 2026, 12:00 CEST.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
50
out of 100
P/E
31.9x
forward 21.1x
1-year return
-18.7%
Dividend yield
0.98%
Cipla Limited in four questions
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Overview
ACCE thesis
Cipla makes generic and specialty drugs across respiratory (inhalers and nebulised products), HIV antiretrovirals, oncology and complex injectables, with a large US generics franchise and a dominant position in Indian branded formulations. Its edge is scale in hard-to-make products: inhalation and complex generics have fewer competitors than oral tablets, which helps sustain a 63.3% gross margin even though operating margin sits at 12.5%, the gap reflecting heavy R&D and selling spend. Revenue growth of 3.5% is subdued, so the near-term case rests on margin recovery and new launches in US specialty and respiratory lines rather than volume expansion. At 31.9x trailing earnings against 21.0x forward, the market is pricing in a sizeable earnings rebound, which makes the thesis hinge on whether margins can improve from here. It is worth a deeper look if you want exposure to Indian pharma's US generics pipeline and are comfortable with that margin-recovery bet, but the top-line growth rate is the figure to test first.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
moderate
Earnings falling despite revenue growth
Earnings are down 39.2% year on year while revenue grew 3.5%, and Q2 2026 EPS missed by 6.4%. Margins are thinner than the gross figure suggests, with operating margin at 12.5%.
moderate
Rich multiple on depressed earnings
Trailing P/E is 31.9 and EV/EBITDA is 18.7, against a forward P/E of 21.0. The gap between trailing and forward multiples depends on the earnings recovery being forecast, which the recent miss puts in question.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-10-22 · prices to Oct 23, 2026
Why it could do well
Revenue has grown 7.4% a year on average over five years, a longer record than the latest 3.5% reading suggests.
Analysts' mean price target of INR 1512.19 sits 13.6% above the current share price.
Debt to equity of 0.02 means the company carries almost no borrowing against its shareholders' funds.
Why it could disappoint
Latest earnings per share came in 6.4% below expectations, at 9.76 against 10.42 forecast.
Revenue grew just 3.5% over the last year, well below its five-year average pace.
At a trailing P/E of 31.9x, the shares are priced richly even after the forward P/E falls to 21.0x.
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