Cipla's consolidated revenue came in higher year on year by 6 percent at Rs 5,801 crore
Shares of Cipla Limited will be in focus on January 27 after the Indian pharmaceutical major posted a consolidated profit after tax (PAT) of Rs 801 crore for Oct-Dec quarter, rising by 10 percent. It had reported a profit of Rs 789 crore in the September'22 quarter.
Consolidated revenue came in higher year on year by 6 percent at Rs 5,801 crore, compared to Rs 5,479 crore logged during the same period in 2021. Revenue in Q2FY23 stood at Rs 5,829 crore.
Catch all the market action on our live blog
Here is what brokerages have to say about stock and the company post December quarter earnings:
Broking house remains positive on Cipla mainly due to its strong India franchise, robust US pipeline, healthy margins and improving return ratios.
The firm cut its estimates to factor in 3QFY23 performance and lower-than-expected Revlimid sales.
Maintain 'Buy' on Cipla with a revised target price of Rs 1,263
Maintain ‘Buy’ rating with revised Target Price of Rs 1,280 from Rs 1,300 earlier
Broking house reduce its FY24/FY25 earnings by ~4 percent factoring in delay in key US launches and lower margins
Continue to remain positive on company’s growth across key segments including India and US given strong traction in respiratory and other portfolio, domestic formulation to potentially grow 10 percent going forward and sustainability of current US revs, backed by potential key launches.
Brokerage house has kept ‘Outperform’ rating on the stock with a target at Rs 1,235 per share as Q3 revenue/EBITDA/PAT missed estimates by 7 percent, 6 percent, 14 percent.
As FY23 EBITDA margin guidance of 21 to 22 percent has been maintained, lowered the FY23/FY24/FY25 EPS estimates to 8 percent, 5 percent, 3 percent to reflect Q3 miss & delay for Advair.
Current stock price is factoring in Q3 miss & Advair delay, reported CNBC-TV18.
Kotak Institutional Equities
Research firm has kept ‘Buy’ rating on the stock with a target at Rs 1,255 per share.
The steady Q3 with softness in SAGA being partially offset by strength in US & higher gross margin.
Expect company’s US sales to deliver healthy 18% CAGR over FY22-25. With domestic performance stays on track, SAGA is expected to pick up Q1FY24 onwards.
Kotak Institutional Equities expect Cipla to deliver robust 24% EPS CAGR over FY22-25, reported CNBC-TV18.
Brokerage house has kept ‘Overweight’ rating on the stock with a target at Rs 1,336 per share.
Cipla continues to enrich its US pipeline with inhalers and peptides with good visibility of 3-4 complex launches every year for next 3 years, reported CNBC-TV18.
Broking house has maintained ‘Hold’ rating on the stock with a target at Rs 1,100 per share.
The Q3 numbers missed revenue/EBITDA estimates by 6 percent on revenue decline in SAGA & muted growth in India.
US was strong on back of seasonality & market share gains in key products, while India & SAGA growth should recover.
The high impact US launches for FY24 have been delayed, poses downside risk to consensus estimates, reported CNBC-TV18.
Expect 18 percent EPS CAGR over FY23-25E given resilient earnings, improving US visibility and strong free cash flow generation.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
