Prabhudas Lilladher's research report on Cipla
Cipla’s Q2FY23 performance was broad based with strong show in domestic formulation and US sales. We continue to remain positive on CIPLA’s growth across key segments including India and US given 1) strong traction in respiratory and other portfolio, 2) Ex-COVID, domestic formulation to potentially grow +10% going forward and 3) sustainability of current US revs, backed by potential key launches. In near term; timely gAdvair launch (H2FY23) will be key trigger. Our FY24/25E EPS stands increased by 6%/8% as we factor in gRevlimid revenues.
Outlook
We expect 18% EPS CAGR over FY22- 25E given resilient earnings, improving visibility from US and strong free cash flow generation. Maintain ‘Buy’ rating with revised TP of Rs1,300/share (Rs 1,110 earlier) based on 25x Sept FY24E EPS.
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