Cipla Limited's intrinsic value using Intellectual Capital analysis

Cipla Limited

BSE : 500087

|

NSE : CIPLA

Industry : Pharmaceuticals

|

ISIN : INE059A01026

|

FreeFloat : 65.00%

|

FnO : Yes

|

LotSize : 1300

BSE SENSEX 50 | Nifty 50 | Nifty50 Equal Weight | BSE 100 | BSE 100 Largecap TMC | BSE 200 | BSE 250 LargeMidcap | BSE Largecap | BSE LargeMidcap | Nifty 100 | Nifty 200 | Nifty LargeMidcap 250 | Nifty100 Equal Weight | Nifty Alpha Low Volatility 30 | Nifty Alpha Quality Low Volatility 30 | Nifty Pharma | BSE Dividend Stability | BSE Low Volatility | Nifty Low Volatility 50 | Nifty100 Alpha 30 | Nifty100 Low Volatility 30 | Nifty200 Momentum 30 | BSE 100 ESG | BSE CARBONEX | BSE GREENEX | Nifty100 Enhanced ESG | Nifty100 ESG | BSE India Manufacturing

Intellectual Capital (IC)	18,433.82
Net Worth (NW)	17,335.26
Intrinsic Worth (IW)	35,769.08
Market Cap (MC)	62,461.81
Economic Value Added	119.39

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	51.54%
IC Gross Margin (EBITDA/IC)	23.59%
IC Net Margin (NPT/IC)	9.99%
Knowledge Turnover (Sales/IC)	1.02
Market to Intrinsic Value (MC/IW)	1.75

As Of	Intrinsic Value	Market Price
30 Sep 2020	Rs. 443.64	Rs. 774.70
15 Jan 2021	-	Rs. 823.70

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : Yes	Buy	10 DMA : Rs. 835.59	Sell	Avoid
KB > 50% : Yes		50 DMA : Rs. 784.56
0 < M2IV < 1 : No		Vol-Price trend : Falling

Question 3 - Is this stock undervalued?

Question 2 - Does this business have significant knowledge assets?

Question 1 - Is this business generating enough profits to cover its cost of capital?

* EVA is a registered trademark of Stern Stewart and Co.

Quarterly Results (Rs. Cr)

Quarter

Type*

Sales

Income

EBITDA

EBIT

PBT

PAT

NPT

Dec-17
C
3913.82
3966.75
871.59
349.24
340.09
403.45
516.01

Mar-18
C
3697.97
3737.98
519.36
234.54
199.34
153.25
415.41

Jun-18
C
3938.99
4109.10
896.48
655.48
620.39
445.61
183.87

Sep-18
C
4011.90
4144.47
834.79
552.89
508.52
366.13
366.91

Dec-18
C
4007.54
4086.07
786.20
493.07
448.88
322.24
222.09

Mar-19
C
4403.98
4499.34
1056.41
546.13
501.35
357.68
354.23

Jun-19
C
3989.02
4067.39
983.01
715.01
662.89
478.19
446.87

Sep-19
C
4395.78
4496.30
1010.02
727.06
680.99
474.50
382.48

Dec-19
C
4371.00
4443.13
830.46
552.57
506.40
339.38
544.23

Mar-20
C
4376.19
4469.37
726.70
380.90
327.90
238.49
-3.46

Jun-20
C
4346.16
4411.61
1114.19
845.21
799.21
566.04
629.31

Sep-20
C
5038.29
5091.76
1230.04
964.98
925.65
659.35
629.40

* C - Consolidated, S - Standalone