Buy Cipla; target of Rs 1715: Sharekhan

Sharekhan's research report on Cipla

Cipla’s revenue reached Rs. 7,051 crore, reflecting a 7% y-o-y increase and a 6% q-o-q rise, meeting our expectations. EBITDA stood at Rs. 1,886 crore with 15% y-o-y growth; it slightly missed our estimates by 1% and margins remained steady at 27%. Cipla is poised for growth in North America, driven by demand for its generic asthma drug and cancer injectables, along with four new approvals secured during the quarter.

Outlook

Cipla has planned meaningful peptide launches in FY2025E and domestic growth from its strong product portfolio. We maintain BUY with a revised PT of Rs. 1,715, as the stock trades at 22x and 19x its estimated FY2026 and FY2027 EPS of Rs. 66.95 and Rs. 77.98.