Sharekhan has given Buy recommendation for Cipla with a target price of Rs. 1150 in its research report issued on Oct 26, 2021
Sharekhan’s research report on Cipla
Cipla reported healthy performance for Q2FY2022, with results ahead of street estimates. Sales and adjusted PAT grew by 9.5% and 6.9% y-o-y, respectively, despite a high base. Strong growth in core therapies, synergies from One-India Strategy, and an expected pick-up in chronic as well as acute therapies would be key drivers for India business and Cipla aims to outperform IPM growth. Market share gains in gAlbuterol, approval for Arformoterol Tartrate Inhalation Solution, and a strong product pipeline including complex products would fuel US sales growth.
Outlook
We expect Cipla’s topline and PAT to report a CAGR of 14% and 24%, respectively, over FY2021-FY2023E.We maintain Buy with an unchanged PT of Rs. 1,150.