Motilal Oswal's research report on Cipla
We met the management of CIPLA to understand its outlook on the business. CIPLA is expanding its product offerings (own and in-licensing). It is recalibrating the positioning of products into Prescription, Trade Generics, and Consumer Healthcare categories in India. Product development and approvals remain on track for differentiated launches in US Generics, which will drive growth till FY25. Overall, we expect 18% earning CAGR over FY22-24, led by 5%/22% sales CAGR in the India/US segment and 240bp margin expansion.
Outlook
We value CIPLA at 23x 12-months forward earnings and add INR40 (NPV related to g-Revlimid) to arrive at our TP of INR1,180. We maintain our Neutral stance, given the limited upside from current levels.
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