Cipla ltd Shares Complete Fundamental Analysis

Description
Cipla is one of the largest pharmaceutical company in India. It has 46 state of the art manufacturing facilities across 5 countries and has 1500+ products. It employs 1300+ scientists and has seen double-digit investments in R&D in recent years. The revenue share is 38% from India, 21% from North America and 20% from Africa. It also has a presence in the European and other emerging markets in Asia.

The pharmaceutical industry is dominated by Innovation and R&D. Cipla spends around 7.5% of their revenue in R&D, which is considered very high in pharmaceutical business. It has 6 R&D facilities across the globe and has a dedicated patent pipeline. They have a total of 308 patents out of which 32 were granted in FY 2018.

The other factor which strengthens the moat is the distribution network. Cipla has a network of 4,00,000+ health care professionals and 3,50,000+ pharmacists. It also has a supplier network of 1000+ suppliers, which makes it one of the largest buyer of pharmaceutical ingredients in India. The company, however, faces competition from other large players like Sun Pharma, Abbott and GSK Pharma.

The Model covers all the major fundamental aspects of Cipla Ltd over the ten year period. The model is easy to edit and update for the future years as well. It includes:
1. Growth Ratios
2. Profitability Ratios
3. Cash Flow Ratios
4. Liquidity and Solvency Ratios
5. Efficiency Ratios
6. Valuation Ratios
7. ROE (Du Pont Analysis)
8. Common Size analysis
9. Enterprise Valuation
10. Financial Strength Analysis

Further Qualitative analysis is also done considering these factors and ratings have been assigned. The analysis is in the word document along with the excel model.