A Holistic Look At Cipla Limited (NSE:CIPLA)

In This Article:

I’ve been keeping an eye on Cipla Limited (NSE:CIPLA) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe CIPLA has a lot to offer. Basically, it is a financially-healthy company with a an impressive history of dividend payments and a excellent growth outlook. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Cipla here.

Excellent balance sheet with reasonable growth potential and pays a dividend

CIPLA’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that CIPLA manages its cash and cost levels well, which is a crucial insight into the health of the company. CIPLA’s has produced operating cash levels of 0.36x total debt over the past year, which implies that CIPLA’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NSEI:CIPLA Future Profit October 7th 18
NSEI:CIPLA Future Profit October 7th 18

CIPLA is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

NSEI:CIPLA Historical Dividend Yield October 7th 18
NSEI:CIPLA Historical Dividend Yield October 7th 18

Next Steps:

For Cipla, there are three essential factors you should look at:

  1. Historical Performance: What has CIPLA’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  2. Valuation: What is CIPLA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CIPLA is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CIPLA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.