Motilal Oswal Financial Services neutral on Cipla; target price- Rs 990

Motilal Oswal Financial Services has neutral call on Cipla with a target price of Rs 990. The current market price of Cipla is Rs 901.1.

Cipla, incorporated in the year 1935, is a Large Cap company (having a market cap of Rs 72606.20 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 31-12-2022, the company has reported a Consolidated Total Income of Rs 5924.53 Crore, down -.45 % from last quarter Total Income of Rs 5951.49 Crore and up 6.36 % from last year same quarter Total Income of Rs 5570.15 Crore. Company has reported net profit after tax of Rs 808.05 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 31-12-2022, the company has a total of 81 Crore shares outstanding.

Investment Rationale
Considering moderate earnings growth and valuation providing limited upside potential, the brokerage reiterates its Neutral rating on the stock.

Promoter/FII Holdings
Promoters held 33.61 per cent stake in the company as of 31-Dec-2022, while FIIs owned 28.39 per cent, DIIs 20.76 per cent.