Motilal Oswal, PL Bullish On Large Cap Pharma Stock, Recommend Buy For Gain

Two leading brokerages have recommended buy call to large cap pharmaceuticals sector stock Cipla Ltd after the company declared its quarterly results. The pharmaceuticals company on October 27 announced a rise of 43.3% in its profit to Rs 1130.91 crore as compared to Rs 788.90 crore in the corresponding quarter of FY 2023, beating estimates. It announced its revenue from operations as Rs 6678.15 crore, up 14.6% from Rs 5828.54 crore in the corresponding quarter of FY 2023. Cipla declared its EBITDA at Rs 1734 crore, up 33.1% from 1302 declared in Q2 FY2023, as per its BSE filing dated October 27, 2023. Check details below:

Motilal Oswal Assigns Buy Call: Motilal Oswal has recommended buy call to Cipla shares with target price of Rs 1450 per share indicating a potential return of 24%.

According to Motilal Oswal, "We remain positive on CIPLA given its market-beating growth in prescription market, efforts to enhance NA product pipeline with differentiated products, and improving profitability in the consumer health business. Reiterate BUY."

CIPLA beat our earnings estimates in 2QFY24, led by a superior performance in the branded generics segment of domestic formulation (DF) and SAGA, added the analyst.

Prabhudas Lilladher Suggests Buy Rating To Cipla: According the brokerage house, "Maintain 'Buy' rating with revised TP of Rs1,350 based on 24x Sept 2025E EPS. Any further FDA escalation to Indore unit and erosion in key products in US will be key risk to our call."

CIPLA's Q2FY24 EBITDA (Rs17.3bn; 26% OPM) was 10% above our estimates, aided by higher GMs (64.9%) and US sales of US$229mn. We continue to remain positive on key segments growth including India & US given 1) strong traction in respiratory & other portfolios, 2) potential +10% growth in domestic formulations and 3) sustainability of current US revs, backed by prospective key launches in FY25, added PL.

Cipla Stock Performance & Return: Current market price of Cipla Stock on BSE is Rs 1196.20 per share with intraday surge of 0.26%. Its 52-week high price is Rs 1277.55 per share and 52-week low price is Rs 852.00 per share, respectively. The company's market capitalisation is Rs 96,572.27 crore. Cipla shares gained 32% in last 6-months, soared 12% YTD, offered 3% gain in last 1-year, and surged 59% in last 3-years.

Cipla is a leading pharmaceutical company that provides affordable medicine to patients across geographies. It came into existence in 1935.

Disclaimer

The stocks have been picked from the brokerage report of Prabhudas Lilladher and Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.