Buy Cipla; target of Rs 1205: ICICI Direct

ICICI Direct's research report on Cipla

Cipla is a global pharma company with over 1,500+ products in 65 therapeutic categories, with over 50 dosage forms. Cipla supplies branded and generic medicines to over 170 countries globally. Indian branded formulations business accounts for ~40% of revenues and enjoys leadership in therapies like respiratory, anti-infective, cardiac,gynaecology & gastro-intestinal Cipla derives 21% of its export revenues from the US followed by 12% from South Africa, 5% from Europe and 16% from RoW markets.

Outlook

We maintain BUY as we continue to focus on its core strength of following a calibrated approach of focusing more on branded products and core therapies across the world We value Cipla at Rs 1205 i.e. 28x P/E on FY23E EPS + Rs 41 NPV for gRevlimid.