Its consolidated operating profit, calculated as earnings before interest, taxes, depreciation, and amortization (EBITDA), grew by 31% on year to Rs 1,494.02 crore. Operating margin expanded a sharp 234 basis points to 23.6%.
Cipla’s India business reported robust growth across branded prescription, trade generics, and consumer health over the last year, resulting in a 12% growth in the One-India franchise.
The US business reported its highest-ever revenue of $222 million, registering a 43% YoY growth and driven by robust momentum in the differentiated portfolio.
At 10.25 am, the scrip was trading 8.5% higher at Rs 1.160 on BSE. Meanwhile, in the last one year, it has surged 19%.
Should you buy or sell Cipla’s stock? Here’s what analysts say:
Jefferies
Jefferies upgraded Cipla to ‘Buy’ with a target price of Rs 1,210. The US performance leads to the beat in Q1 results. The management commentary provides a positive read-through.Guidance is revised for the year. The global investment bank increases FY24-26 EPS by 12-20%.
Prabhudas Lilladher
Prabhudas Lilladher maintained its ‘Buy’ rating on Cipla with a target price of Rs 1,220.
“Cipla’s Q1FY24 EBITDA was 13% above our estimates, aided by higher GMs and US sales of US$222mn. We continue to remain positive on growth across key segments including India and US given strong traction in respiratory and other portfolio, potential growth of +10% in domestic formulations, and sustainability of current US revs, backed by prospective key launches over FY25,” it said.
Kotak Institutional Equities
Kotak reiterated its ‘Buy’ rating on the stock with a target price of Rs 1,230.
“Cipla delivered a 9% EBITDA beat in 1QFY24, driven by strength across the US and India. While resonating buoyancy on near-term generics pricing in the US, Cipla has hiked its US sales and EBITDA margin guidance for FY2024. The launch timelines of the key US molecules remain unchanged. Apart from the US, outlook in India and the SA private market stays upbeat,” it said.
“While we continue to await classification of the Pithampur inspection by the US FDA, we have baked in an OAI. Despite the regulatory setbacks, we expect Cipla to post a robust 19% EPS CAGR over FY2023-26E,” Kotak said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)