Cipla Share Target; Share Price Falls After Earnings, What Should Investors Do Now?

Cipla Q4 Results

Cipla’s stock dropped in early trading the day after the firm released its March quarter results.

Cipla announced on May 10 that its consolidated profit after tax (PAT) for the quarter ended March was Rs 362 crore, down 12% from a year earlier. In the preceding quarter, the business reported a PAT of Rs 729 crore.

The total income for the year was Rs 5,260 crore, up 14% from the previous year. The December quarter brought in Rs 5,479 crore in revenue.

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Here is what brokerages have to say about the stock and the company after earnings:

Goldman Sachs | Target Price : Rs 850

Cipla has a sell rating and a target price of Rs 850 per share, according to the international research company.

Higher US/India sales were somewhat offset by decline in the bulk pharma sector, resulting in sales/EBITDA growth of 14/-6 percent, significantly below consensus.

The performance of Albuterol and Arformoterol in the United States improved.

According to CNBC-TV18, the research firm cut FY23-24 earnings per share (EPS) predictions by 2-11 percent.

Morgan Stanley | Target Price : Rs 1122

Cipla has an overweight rating from the brokerage company, with a target price of Rs 1,122 per share.

In the United States, Morgan Stanley forecasts mid-teen growth for branded generics and mid-teen growth for high-value complex launches.

According to CNBC-TV18, the business is continuing to establish a strong pipeline of inhalers, as well as sophisticated injectables and peptides for the long term.

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Citi | Target Price : Rs 1120

The research company kept its buy recommendation and boosted the target price to Rs 1,170 per share from Rs 1,120.

“It was a strong quarter, with soft margin expectations that might be changed in the future,” it stated.

According to CNBC-TV18, pricing tailwinds in India and US launches might assist revise up statistics.

Credit Suisse | Target Price : Rs 1100

Cipla’s outperform rating has been maintained, but the target price has been reduced from Rs 1,150 to Rs 1,100.

Because Advair approval is still expected, the FY23 margin projection is somewhat lower.

According to CNBC-TV18, the FY22-24 EPS compound yearly rate is robust at 17 percent.

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Jefferies | Target Price : Rs 1165

Cipla’s buy recommendation has been maintained by the brokerage company, but the target price has been reduced from Rs 1,205 to Rs 1,165 per share.

Revenue/adjusted EBITDA was 6% higher than expected.

According to CNBC-TV18, the US forecast for FY23 is positive, with generic versions of Revlimid, Abraxane, and Advair under development.

Prabhudas Lilladher | Target Price : Rs 1085

“Cipla’s success was diverse, with high showings in domestic formulation and sales in the United States.

“We remain optimistic about development in important markets like as India and the United States.

“Given solid profits, better visibility from the US, and good free cash flow generation, we forecast 15 percent EPS compound annual rate from the basic business (minus Revlimid) during FY22-24. Our forecasts for FY23/24 have been cut by 5/2 percent “It said, “rcent.”

Maintain a ‘Buy’ recommendation on the stock, with a target price of Rs 1085 per share based on 24x FY24 EPS + Rs 20 per share for Revlimid.

Motilal Oswal | Target Price : Rs 880

“We cut our EPS estimates for FY23 and FY24 by 7% each to account for increasing R&D spending and operational costs linked to procurement and supply chain.

“Over FY22-24, we estimate a 14 percent compound annual earnings rate, driven by a 21/5/10 percent sales compound annual rate in US generics/DF/SAGA.

“To get at our target price of Rs 880, we value the company at 23 times 12-month forward earnings and add Rs 35/share of gRevlimid NPV. We keep our neutral rating since present values appropriately account for the potential for profits growth “it said

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At 09:15 hrs Cipla was quoting at Rs 919, down Rs 7.25 or 0.78 percent on the BSE.

Disclaimer :- The views and recommendations made above are those of individual analysts or broking companies, and not of Ours.
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