Buy Cipla; target of Rs 670: ICICI Direct

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26 Aug, 2025 12:21

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ICICI Direct's research report on Cipla

Revenues remained flat at Rs 4376 crore YoY due to 25.1% YoY decline in US revenues to Rs 856 crore, attributable mainly to high base of gSensipar. On the other hand, domestic formulations grew 15.3% to Rs 1730 crore. EBITDA margins fell 735 bps YoY to 14.5% mainly due to a sharp drop in gross margins (61.4% vs. 66.3% in Q4FY19). EBITDA de-grew 34.1% YoY to Rs 633.5 crore. Net profit fell 33.0% YoY to Rs 246.0 crore due to a below expected operational performance. Delta vis-à-vis EBITDA was due to lower depreciation.

Outlook

Our revised target price is Rs 670 based on 22x FY22E EPS Rs 30.2. We upgrade the stock from HOLD to BUY

For all recommendations report, click here

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