Prabhudas Lilladher's research report on Cipla
CIPLA’s Q4FY25 EBITDA (Rs15.4bn; 22.8% OPM) was in line with our estimates. While Q4 is seasonally weak quarter; margins at 23% were above our estimate. Despite delay in new launches and supply issues of gLanreotide; Cipla managed to deliver strong profitability/margins in H2FY25. We expect Cipla to maintain its existing US sales run-rate. This will be aided by several high value niche launches in the US like gAbraxane, Nilotininb, gAdvair. Further, Cipla’s strong net cash position of +$1bn provides flexibility to pursue strategic M&A opportunities. Our FY26E/27E EPS broadly remain unchanged.
Outlook
At CMP, stock is trading 23x FY26E EPS. We maintain our ‘BUY’ with TP of Rs1,730/share. Timely launch of critical high-value products in the US in FY26E/27E will be key.
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