Cipla (NSE:CIPLA) ROCE %: 8.12% (As of Mar. 2026)

What is Cipla ROCE %?

Cipla NSE:CIPLA +0.15% 94 ROCE % is 8.12% as of Mar. 2026. GuruFocus rates NSE:CIPLA with a GF Score™ of 94/100 and a GF Value™ of ₹1,568.12 (Fairly Valued). The stock has 3 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Cipla's annualized ROCE % for the quarter that ended in Mar. 2026 was 8.12%.

Cipla (NSE:CIPLA) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Cipla ROCE % Related Terms

Cipla ROCE % Historical Data

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The historical data trend for Cipla's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Cipla ROCE % Chart

Cipla Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

ROCE %

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16.83

17.76

22.28

23.12

15.65

Cipla Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															19.04	22.37	22.05	10.71	8.12

94GF Score

Cipla Ltd NSE:CIPLA

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Cipla ROCE % Calculation

Cipla's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2026 )		(A: Mar. 2025 )		(A: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2026 )		(A: Mar. 2025 )		(A: Mar. 2026 )
	=	52718.6	/	( ( (373870.4 - 54839.6)	+	(424959.8 - 70135.9) )	/ 2 )
	=	52718.6	/	( (319030.8	+	354823.9)	/ 2 )
	=	52718.6	/	336927.35
	=	15.65 %

Cipla's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	28807.6	/	( ( (0 - 0)	+	(424959.8 - 70135.9) )	/ 1 )
	=	28807.6	/	( ( 0	+	354823.9 )	/ 1 )
	=	28807.6	/	354823.9
	=	8.12 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 8.12% mean?

Cipla (NSE:CIPLA) has a ROCE % of 8.12% as of Mar. 2026.

Is Cipla's ROCE % too high?

Cipla's current ROCE % is 8.12%. The Drug Manufacturers industry median ROCE % is 7.00. Cipla's value of 8.12% is 16.1% above this industry median. Overall, Cipla has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.

How does Cipla's ROCE % compare to ZTS?

Cipla's ROCE % of 8.12% can be compared against companies in the Drug Manufacturers industry. The industry median ROCE % is 7.00. Cipla's value of 8.12% is 16.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Drug Manufacturers company?

The median ROCE % among Drug Manufacturers companies is 7.00, based on 958 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cipla's current ROCE % of 8.12% is 16.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Drug Manufacturers industry, the median ROCE % is 7.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cipla's current ROCE % is 8.12%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Cipla stock overvalued right now?

Based on GuruFocus' analysis, Cipla (NSE:CIPLA) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,568.12, compared to a current price of ₹1,440.10 — trading 8.2% below its estimated fair value. The current ROCE % is 8.12% and 16.1% above the Drug Manufacturers industry median of 7.00. Cipla's overall GF Score™ is 94/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Cipla (NSE:CIPLA), the current ROCE % is 8.12% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Cipla (NSE:CIPLA) Overvalued in 2026?

Based on GuruFocus' analysis, Cipla stock appears to be undervalued. The current stock price of ₹1,440.10 is trading 8.2% below its estimated GF Value™ of ₹1,568.12. GuruFocus considers Cipla to be Fairly Valued.

Key valuation signals for NSE:CIPLA:

ROCE %: 8.12%
GF Value™: ₹1,568.12 vs. price of ₹1,440.10 (8.2% below fair value)
GF Score™: 94/100 with 3 warning signs
Industry Position: 16.1% above the Drug Manufacturers median

No single metric tells the full story. See the NSE:CIPLA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Cipla Business Description

Industry Healthcare Drug Manufacturers

Comparable Companies BOM:500124 BOM:532321 BOM:500257 BOM:543904 NSE:AUROPHARMA NSE:TORNTPHARM BOM:540222 NSE:ALKEM BOM:532296 BOM:500488 XTER:MRK TSE:4502 XSWX:GALD SHSE:600276 NSE:SUNPHARMA XTAE:TEVA LSE:HLN XSWX:SDZ ZTS HKSE:03692

Other Exchanges 500087:India

Address Ganpatrao Kadam Marg, Cipla House, Peninsula Business Park, Lower Parel, Mumbai, MH, IND, 400 013

Website https://www.cipla.com

Cipla Ltd is a drug manufacturing company that focuses on a variety of pharmaceutical products. The company's product portfolio spans complex generics as well as drugs in the respiratory, anti-retroviral, urology, cardiology, anti-infective, CNS, and various other key therapeutic segments. The bulk of its sales are generated in India, although it maintains a large world-wide presence. Cipla's growth plan focuses on new product launches. It has two segments Pharmaceuticals and new ventures. It derives maximum revenue from Pharmaceuticals Segment.

94GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹1,440.10

Price

₹1,568.12

GF Value

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