Accumulate Cipla Ltd; target of Rs 1808: Asit C Mehta

Asit C Mehta report on Cipla Ltd

Cipla Limited (CIPLA) was established in 1935, together with its subsidiaries, engages in the manufacture, development, sale, and distribution of pharmaceutical products in India, the United States, South Africa, and internationally. The company operates through Pharmaceuticals and New Ventures segments. It offers generic and branded generic medicines, vaccines, active pharmaceutical ingredients, and formulations for various therapeutic areas, such as MI, angina, heart disease, pulmonary disease, kidney failure, Alzheimer’s disease, hypertension, arrhythmia, lipid abnormalities and diabetes, obesity, central nervous system, HIV/AIDS, respiratory, asthma, urology, oncology, cardiometabolism, child health, infectious diseases and critical care, hepatitis, women’s health, ophthalmology, and neuro psychiatry. The company is also involved in the consumer healthcare, biosimilars, and specialty businesses.

Outlook

The company’s diversified product portfolio and focus on high-margin segments are expected to drive EBITDA margin expansion and profitability. We recommend Accumulate, with a target price of Rs. 1808, based on a PE multiple of 27x FY27E EPS of 67.