Cipla Ltd. share price target

Slight miss on Q4 revenue but EBITDA underperformed our estimate by 32% due to lower margins (incl. one-time charge of Rs 2bn)

We initiate coverage on CIPLA Ltd (CIPLA) with a BUY rating and a target price of Rs 1,200 (PE 24x for FY24E EPS), implying an upside of 15.5% from the current levels

Cipla Q3 results: Net profit slips marginally to Rs 729 crore, beats estimates For the quarter ending Dec 2021, consolidated Net sales (including other operating income) of Cipla has increased 6% to Rs 5478.86 crore compared to quarter ended Dec 2020. Sales of...

65 therapeutic categories, with over 50 dosage forms. Cipla supplies branded and generic medicines to over 170 countries globally. Cipla derives 21% of its export revenues from the US followed by 12% from South Africa, 5% from Europe and 16% from RoW markets...

CIPLA delivered a better-than-expected 3QFY22 performance, led by robust growth in the Domestic Formulation (DF) segment, steadily improving sales in North America (NA), and better operating leverage. This was partly offset by a momentary slowdown in API sales in the developed markets. We raise our FY22E/FY23E/FY24E EPS estimate by 3%/6%/4%, factoring in a) market share gains in already launched ANDAs and upcoming potential new launches, such as Lanreotide, b) strong growth in anchor consumer brands in India/South Africa, and c) moderation in the API business outlook. We value...

We expect 15% EPS CAGR over FY21-24E from base business (ex Revlimid) given resilient earnings, improving visibility from US and strong free cash flow generation. We broadly maintain our estimates and Buy' rating with TP of Rs1100/share based on 24x Dec 2023E EPS plus Rs20/share for Revlimid....

Q3 sales growth modest at 6% YoY led by US and India formulations. API sales declined due to slowdown in orders from developed markets