Accumulate Cipla; target of Rs 1,620: Deven Choksey

Deven Choksey recommended accumulate rating on Cipla with a target price of Rs 1,620 in its research report dated November 04, 2025.

Broker Research

November 05, 2025 / 16:09 IST

Accumulate

26 Aug, 2025 12:21

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Deven Choksey's research report on Cipla

Revenue from operations rose 9.1% QoQ (+7.6% YoY) to INR 75,894 Mn, broadly in line with our estimates (+2.6%). Growth was driven by strong performance in the India and Emerging Market segments, partially offset by weakness in North America due to pricing pressure and high base impact. Sequential improvement reflects normalization in inventory and healthy traction in chronic therapies.

Outlook

Cipla’s near-to-medium term outlook remains positive, underpinned by strong execution in domestic formulations and a visible ramp-up in complex generics and biosimilars in the U.S. market. The India business continues to benefit from leadership in chronic and respiratory therapies, while structural tailwinds such as rising healthcare penetration and steady prescription demand further reinforce growth visibility. In North America, new launches like Advair, alongside scale-up in Albuterol and Lanreotide, are expected to offset pricing pressure and contribute meaningfully from H2FY26 onwards. The company’s strategic investments in automation, digital transformation, and backward integration are likely to sustain operating efficiency over the medium term. We value Cipla at a 23.5x Sep’27 EPS, implying a target price of INR 1,620, as we roll forward our valuation to Q2FY28E. We upgrade our HOLD rating to “ACCUMULATE” on the stock as the recent stock correction provides a favorable entry point, while improving earnings visibility in complex generics, respiratory, and biosimilar segments strengthens the medium-term outlook.

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