Cipla Share is Rising : Why we should invest in these stock?

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Cipla Ltd is an Indian multinational pharmaceutical and biotechnology company headquartered in Mumbai, India. It is one of the largest pharmaceutical companies in India and has a significant presence in the global pharmaceutical market.

Key financial metrics for Cipla Ltd

Revenue :

Cipla’s revenue is a measure of the total amount of money generated from the sales of its pharmaceutical products. The company’s revenue can vary based on factors such as product demand, market competition, and regulatory changes. Cipla Ltd’s revenue jumped 18.01% since last year same period to ₹6,465.18Cr in the Q1 2023-2024. On a quarterly growth basis, Cipla Ltd has generated 10.07% jump in its revenue since last 3-months.

Net income

Net income represents the company’s total earnings after all expenses, taxes, and deductions have been accounted for. It provides an indication of the company’s profitability. Net Profits: Cipla Ltd’s net profit jumped 45.06% since last year same period to ₹995.70Cr in the Q1 2023-2024.

Earnings Per Share (EPS) & Price to Earnings Ratio (PE Ratio)

Cipla reported INR12.34 in EPS Earnings Per Share for its fiscal quarter ending in June of 2023. PE Ratio of Cipla is 30.29. EPS is calculated by dividing the company’s net income by the total number of outstanding shares. It is an important metric for investors to assess a company’s profitability on a per-share basis.

Debt Levels

Company is virtually debt free. Company has a healthy Interest coverage ratio of 128.33. Monitoring the company’s debt levels, including long-term and short-term debt, can provide insights into its financial stability and ability to meet its financial obligations.

Market Capitalization

As of July 2023 Cipla has a market cap of $10.32 Billion. This makes Cipla the world’s 1520th most valuable company by market cap according to our data. Cipla has 47 manufacturing locations across the world and sells its products in 86 countries. It is the third largest drug producer in India.

Also Read : What is happening with Tata Power? is now the Time to Buy?

Key Benefits of Investing In Cipla Stock

Returns of cipla stock

Cipla has given 88.50% returns in last 5 years, 69.27% ​​returns in 3 years and 15.69% returns in 1 year. In this, you can understand that the way the inflation rate is increasing by 6%, which is not affecting your cipla returns, at least you need 12% returns to stay away from the effect of inflation and this in cipla stock  you are getting returns of more than 12%.

Stock  performance

On Friday, August 4, the stock price of cipla became ₹1,208.60 at 1:52 pm, which is ₹42.75 more than the previous closing of the stock, which means an increase of 3.67% in the stock price.  The stock price is expected to increase up to ₹1,238.40 on Friday, 4 August.

On Friday, August 4, Cipla shares soared up to 6.3% to a record high of Rs 1,238.55 on the BSE.  Which is the 52-week high price of Cipla stock.

Shareholders in portfolio of cipla

Promoters hold 33.47% shareholding in Cipla’s portfolio.  FII’s shareholding of 25.49% is the second largest share in cipla’s portfolio after promoters, and an increase in FII stake in a company means better returns for you.  DII holds 23.83%, MF holds 15.32% and others hold 17.21%

Dividend records

Cipla has provided very good dividends to its shareholders from time to time.  A dividend of 425% was announced in May 2023, a dividend of 250% was given to the shareholders in May 2022 and a dividend of 250% was offered to the shareholders in the year 2021 as well.

Financial performance of cipla

Cipla has earned a total income of ₹ 6,465.18 crore in the first quarter of the financial year 2023-24.  IT has grown by 10.07%, PAT has grown by 90.93%, as well as EBIT has also grown by 78.39%. If seen, Cipla’s net profit margin is 15.40%, which means net profit of about ₹ 996 crores.  While the profit margin of the previous quarter was only 8.88%.  Cipla’s Basic EPS of ₹12.34 is around ₹6 higher than last quarter’s EPS.

Conclusion

Cipla Ltd is a prominent Indian multinational pharmaceutical and biotechnology company with headquarters in Mumbai. It holds a significant position in both the Indian and global pharmaceutical markets. As of the provided data up to Q1 2023-2024

Cipla Share Price

Frequently asked questions (FAQs)

What are some key financial metrics for evaluating Cipla’s performance?

Key financial metrics include revenue, net income, earnings per share (EPS), price-to-earnings ratio (PE ratio), debt levels, and market capitalization.

How has Cipla’s revenue performance been recently?

Cipla’s revenue saw an 18.01% increase in Q1 2023-2024 compared to the same period in the previous year, reaching ₹6,465.18 crore.

What is Cipla’s net income growth rate?

Cipla’s net profit experienced a growth of 45.06% in Q1 2023-2024 compared to the same period in the previous year, amounting to ₹995.70 crore.

How is Cipla’s stock performing?

Cipla’s stock has provided positive returns, with 88.50% returns in the last 5 years, 69.27% returns in 3 years, and 15.69% returns in 1 year.

What is Cipla’s market capitalization?

As of July 2023, Cipla’s market capitalization is $10.32 billion, making it one of the valuable companies in the market.

How does Cipla’s dividend history look?

Cipla has provided good dividends to its shareholders, including dividends of 425%, 250%, and 250% announced in the years 2023, 2022, and 2021 respectively.

What are the major shareholders in Cipla?

Promoters hold the largest share in Cipla’s portfolio at 33.47%, followed by FII’s shareholding of 25.49%, while DII holds 23.83%, MF holds 15.32%, and others hold 17.21%.

How has Cipla’s financial performance improved?

In Q1 2023-2024, Cipla demonstrated growth in total income by 10.07%, PAT by 90.93%, and EBIT by 78.39%. The net profit margin is 15.40%, with a Basic EPS of ₹12.34.

Declaimer

The information provided earlier is based on data available up to Q1 2023-2024 and may not reflect the current or most up-to-date status of Cipla Ltd’s financial performance, stock details, or other relevant information. Stock prices, financial metrics, and market conditions can change rapidly, and it is important to verify any information from reliable and authoritative sources before making any investment decisions or drawing conclusions.

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