Buy Cipla; target of Rs 1167: KR Choksey

KR Choksey is bullish on Cipla has recommended buy rating on the stock with a target price of Rs 1167 in its research report dated May 17, 2023.

Broker Research

May 17, 2023 / 17:39 IST

Buy

26 Aug, 2025 12:21

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KR Choksey's research report on Cipla

The consolidated revenue for the quarter grew by 9.1% YoY to INR 57,393 Mn (-1.3% QoQ) driven by good traction in the US markets. For FY23, the revenues stood at INR 2,27,531 Mn (+4.5% YoY). EBITDA for the quarter stood at INR 11,737 Mn, contracted by 16.6% on QoQ ( +21% YoY). The EBITDA margins declined by -378 bps on QoQ at 20.5% (+202bps YoY). The quarterly margins reduced due to the high inflationary environment and rise in R&D spend. However, the company reported highest ever EBITDA of INR 50270 Mn in FY23 . The EBITDA margins for FY23 stood at 22.1%. PAT for the quarter declined by 18.5% YoY and 35.4% QoQ to INR 5215 Mn. The PAT margins stood at 9.1% ( -307 bps YoY, -482 bps QoQ) . EPS for the quarter stood at INR 6.47 as against INR 8.80 in FY22 and INR 10.02 in Q4FY22.

Outlook

We have revised our target price to INR 1167/share (Earlier 1289), gives an upside potential of 26.5% from its CMP of INR 922/share, we revised our rating from ACCUMULATE to BUY rating on the shares of Cipla.

For all recommendations report, click here