Buy Cipla, target price Rs 1420: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Cipla with a target price of Rs 1420. The current market price of Cipla is Rs 1243.15.

Cipla, incorporated in the year 1935, is a Large Cap company (having a market cap of Rs 100069.39 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.


Financials
For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 6465.18 Crore, up 10.07 % from last quarter Total Income of Rs 5873.93 Crore and up 18.01 % from last year same quarter Total Income of Rs 5478.62 Crore. Company has reported net profit after tax of Rs 996.58 Crore in latest quarter.

Investment Rationale
The strong respiratory franchise, higher chronic share at 60%of DF sales (vs. 40% at industry level) and healthy growth potential across prescription, trade generics and consumer healthcare segments would drive industry outperformance in the DF segment. The brokerage values CIPLA at 25x 12Mforward earnings and add NPV of INR30 related to g-Revlimid to arrive at its TP of INR1,420.

Promoter/FII Holdings
Promoters held 33.47 per cent stake in the company as of 30-Jun-2023, while FIIs owned 25.49 per cent, DIIs 23.83 per cent.