Buy Cipla; target of Rs 1754: Mirae Asset Sharekhan

Mirae Asset Sharekhan's research report on Cipla

Cipla has robust domestic and global product pipelines. US product pipeline to be healthy and will be key to driving growth from H2FY26E and contribute significantly from FY27E onwards. Strong presence in key therapies, large trade generics portfolio and a growing consumer health portfolio provide visibility for FY27 and beyond domestically.

Outlook

With the current valuation overhang on the sector, the stock trades at close to its four-year average 1 year forward P/E of 24x and with the triggers eyed from H2FY26, we maintain a Buy, valuing the stock at 26x on FY27E EPS of Rs. 67.5 and arrive at a price target of Rs. 1,754.