Deven Choksey's research report on Cipla
In Q1FY26, the revenue grew marginally by 3.9% YoY (+3.4% QoQ) to INR 69,575 Mn., stood below our estimates (-3.1%), majorly led by weakness observed in North America and slower traction across India. The revenue growth was majorly driven by double-digit growth across the One Africa, Emerging markets and Europe vertical, partially offset by a decline in the North America vertical.
Outlook
We have rolled forward our valuation basis to Jun’27 estimates. We value Cipla at 23.5x Jun’27 EPS, implying a target price of INR 1,570. The stock is currently trading at 24.4x/23.6x on our FY26E/FY27E EPS estimates. We downgrade our rating from “ACCUMULATE” to “HOLD” on the stock, as we believe that ramp-down of Revlimid in the US portfolio will weigh on the future growth of the Company.
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