Accumulate Cipla; target of Rs 698: Emkay

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26 Aug, 2025 12:21

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Emkay's research report on CiplaCipla’s acquisition of Hetero’s US business comes at a surprisingly reasonable valuations as compared to the recent M&A deals by other Indian generic companiesThe acquisition gives better product launch visibility for Cipla’s US generic business, which was lacking despite Cipla’s formidable respiratory franchiseInvaGen appears to have a surprisingly high revenue/ANDA, assuming a similar average for new launches ahead yields an InvaGen revenue CAGR growth of over 23%InvaGen also appears to have a form 483 on a recent inspection in May 2015, though the severity of the same is unknownRaise our rating to ACCUMULATE given improving traction within US generic business including InvaGen portfolio"Cipla had recently indicated to overall respiratory franchise (India/US/EU) expanding from current USD350mn of overall revenues to cUSD1.1bn by FY20 with the bulk of the incremental growth to be driven by US/EU markets. We believe such traction coupled with US launches in other therapeutic segments could set a strong pace for earnings growth. Raise rating to ACCUMULATE retaining our current estimates as well and await better clarity on earnings accretion from recent M&A. We risk being early on our upgrade call as Cipla’s US launch opportunities risk being delayed", says Emkay Global Financial Services research report.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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