Analysts expect Cipla to return up to 30% from here on as India biz gains momentum – The Economic Times

lipped from: https://economictimes.indiatimes.com/markets/stocks/news/analysts-expect-cipla-to-return-up-to-30-from-here-on-as-india-biz-gains-momentum/articleshow/82727318.cms

Synopsis–Kotak Securities said the expansion of the Covid portfolio would support near-term earnings while the continued rollout of respiratory franchisee in the US and strong execution of One India strategy will drive the company’s earnings growth over FY23-24.

Mumbai: Analysts remain bullish on Cipla despite its lower-than-expected March quarter earnings and see up to 30 per cent upside for the stock from the current levels citing strong growth momentum in the India business. Analysts raised their average target price by 6 per cent from Rs 998 to Rs 1,055 after the fourth quarter results. Cipla shares declined 2.5 per cent to close at Rs 881.20 on Monday.

Cipla on Friday reported a 68 per cent year-on-year rise in its consolidated net profit at Rs 413 crore for the quarter ended March, while its consolidated revenues for the quarter rose 5.2 per cent to Rs 4,606 crore.

While raising its target price from Rs 1,020 to Rs 1,080, CLSA said Covid-19 product sales in India will be a key near-term catalyst that should help it sustain its 22 per cent margins.

“While March quarter result was disappointing, Cipla’s earnings profile is set to improve with increased capital allocation towards India and South Africa.”

Cipla

Kotak Securities said the expansion of the Covid portfolio would support near-term earnings while the continued rollout of respiratory franchisee in the US and strong execution of One India strategy will drive the company’s earnings growth over FY23-24.

“Despite the March quarter miss, we maintain our positive view on Cipla for its strong outlook in focus segments like India and the US,” said a report by HSBC. “Cipla is seeing rising demand for Covid-19 related products such as Remdesivir and the impact should be reflected in June quarter.”

Share the joy of reading! Gift this story to your friends & peers with a personalized message. Gift Now

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s