Sharekhan's research report on Cipla
Among the new set of complex product launches, gAbraxane is held up due to Goa site being under Official Action Indication (OAI) status and it can delay the launch by 6-9 months. Thereby, leading to potential downgrade in earnings estimates for FY2024. Cipla has witnessed a slower than expected growth in its India Pharma market sales in Q3FY23E (Oct and Nov 22) and has lagged behind the industry average growth rate. While on one side, recent product launches in the US are holding up in terms of market share and newly launched product is gaining market share, relatively earlier launched product, gAlbuterol is losing market share due to competition.
Outlook
We reduce the Buy rating and price target (PT) on Cipla to HOLD, as we foresee headwinds to margins expansion and therefore reduce the earnings growth estimate to 17.1% CAGR vs. 20.5% CAGR estimated, before, during FY22-FY25E.
For all recommendations report, 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.
