Buy Cipla, target price Rs 1058: ICICI Securities

ICICI Securities has buy call on Cipla with a target price of Rs 1058. The current market price of Cipla is Rs 910.05. Time period given by analyst is one year when Cipla Ltd. price can reach defined target.

Cipla Ltd., incorporated in the year 1935, is a Large Cap company (having a market cap of Rs 73066.96 Crore) operating in Pharmaceuticals sector.

Cipla Ltd. key Products/Revenue Segments include Pharmaceuticals, Other Operating Revenue, Export Incentives, Royalty Income and Scrap for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 5570.15 Crore, down -.18 % from last quarter Total Income of Rs 5580.47 Crore and up 5.98 % from last year same quarter Total Income of Rs 5255.63 Crore. Company reported net profit after tax of Rs 758.95 Crore in latest quarter.

Investment Rationale
The brokerage marginally tweak estimates to factor in expected incremental sales from the Lanreotide injection approval. It upgrades the stock to BUY from ADD with a revised target price of Rs1,058/share (earlier Rs1,004/share) based on 25x Sep’23E earnings and Rs32/share for Revlimid. Key downside risks: Regulatory hurdles, forex fluctuations and lower growth in India market.

Promoter/FII Holdings
Promoters held 36.11 per cent stake in the company as of 31-Dec-2021, while FIIs owned 28.01 per cent, DIIs 17.86 per cent.