Accumulate Cipla; target of Rs 804: Dolat Capital

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26 Aug, 2025 12:21

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Dolat Capital's research report on Cipla

Cipla’s mantra of ‘Balancing growth with cost leadership’ reflects in its guidance of cost savings of ~Rs5bn in FY21 led by (1) leveraging digital technology in India branded formulations – marketing, promotions, conferences, product launches, (2) calibration of R&D – focussed products in inhalation. Cipla is hopeful of leveraging the digitization practice beyond FY21 and guided for healthy operating performance. Besides attaining cost efficiencies, it is working towards becoming the global leader in inhalation (Cipla is 2nd led by GSK). Cipla has been working on six inhalation products, with launches planned between FY21-25. Of the six, Albuterol (launched, MS-65%), ProAir (approved in 4Q, working on queries), Advair and Spiriva (filed), Symbicort (in clinics). It has also launched DHE nasal spray with 180-days exclusivity. We see increasing visibility over the medium-term earnings, given signs of improving execution in India and strong US build-out.

Outlook

At CMP, the stock trades at 27x/22.7x our FY21/22 EPS of Rs26.6 and Rs32.2 respectively. Accumulate.

For all recommendations report, click here

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