Buy Cipla, target price Rs 1,090: ICICI Direct

ICICI Direct has buy call on Cipla with a target price of Rs 1090. The current market price of Cipla is Rs 914.45. Time period given by analyst is year when Cipla price can reach defined target.

Cipla, incorporated in the year 1935, is a Large Cap company (having a market cap of Rs 73725.14 crore) operating in Pharmaceuticals sector.

Cipla key Products/Revenue Segments include Pharmaceuticals, Royalty Income, Other Operating Revenue, Export Incentives and Scrap for the year ending 31-Mar-2022.


Investment Rationale
We maintain BUY rating due to 1) continued focus on its core strength of respiratory franchise along with other niche launches in the US (significant momentum expected from H2FY24), 2) calibrated focus on core therapies in India, 3) shift to private markets from tenderised models in other export markets.

Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 5873.93 crore, down -.85 % from last quarter Total Income of Rs 5924.53 crore and up 10.32 % from last year same quarter Total Income of Rs 5324.35 crore. Company has reported net profit after tax of Rs 523.12 crore in latest quarter.

The company’s top management includes Dr.Y K Hamied, Ms.Punita Lal, Mr.Adil Zainulbhai, Dr.Peter Mugyenyi, Mr.Robert Stewart, Mr.P R Ramesh, Mr.Ashok Sinha, Mr.S Radhakrishnan, Mr.Umang Vohra, Ms.Samina Hamied, Mr.M K Hamied, Dr.Mandar Vaidya. Company has Walker Chandiok & Co. LLP as its auditors. As on 31-03-2023, the company has a total of 81 crore shares outstanding.

Promoter/FII Holdings
Promoters held 33.55 per cent stake in the company as of 31-Mar-2023, while FIIs owned 27.42 per cent, DIIs 21.72 per cent.