Buy Cipla; target of Rs 1279: Sharekhan

Sharekhan is bullish on Cipla has recommended buy rating on the stock with a target price of Rs 1279 in its research report dated July 26, 2023.

Broker Research

July 29, 2023 / 22:03 IST

Buy

26 Aug, 2025 12:21

Volume

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Sharekhan's research report on Cipla

Profitability strongly beat ours and consensus estimates in Q1FY2024 by 15.7% and 15.9%, respectively, driven by continued strong growth in the US and a recovery in India, leading to an improved products mix. US business growth was driven by continued performance of key products such as gRevlimid and Lanreotide and stability in market share of Albuterol. A rise in chronic segment’s revenues aided a recovery in India business’ revenues.

Outlook

We revise our earnings growth estimate to 22.6% over FY23-FY25E from a 15.2% CAGR earlier, and hence upgrade the PT to Rs. 1279 (vs. before Rs. 1,030) and also upgrade the rating to Buy. Stock trades at a lower level of ~22.7x and ~19.4x its FY24 and FY25E EPS estimates vs. peers trading at ~28.2x and ~23.3x its FY24E and FY25E EPS estimates, indicating attractive valuation.

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