Cipla Share Price: After company reports healthy March quarter numbers, brokerages turn bullish on stock; recommend buy

Cipla Share Price: Brokerages are bullish on the Cipla shares and expects a 28 per cent upside in this stock. A healthy March quarter results will likely act as a trigger for the upside, they opined. Shares of Cipla today ended at Rs 937.5 per share on the BSE, up over 1 per cent from the Tuesday closing price. 

Cipla's core earnings in Q4 were reported almost in-line with the industry estimates although higher costs put a dent in the margins, Philip Capital said in its report. The Brokerage firm expects a qualitative growth in company's profitability, going ahead aided by strong US growth, robust domestic business, and steady exports. 

Philip Capital has cut its FY23/FY24 earnings by 7%/4% and estimated 27% earnings CAGR over FY22-24 amid higher cost guidance. 

It has retained a 'Buy' rating on the stock with a target price of Rs 1,200 per share, implying a 28 per cent upside in the counter. 

Meanwhile, CITI has also maintained a 'Buy' stance and it expects the stock price of Cipla to grow to Rs 1170 per share, implying over 24 per cent upside in the stock. In its estimates, CITI expects a healthy Q4 earnings of Cipla as margin guidance appears soft, though it can be revised in future. 

Pricing tailwinds in India and US launches (gLanreotide+ gRevlimid+ gAdvair) can help revise the numbers of Cipla upward in coming quarters, it said further. 

Cipla’s revenue was iabove the estimate though profit after tax (PAT) did not match the expectations getting weighed down by margin pressure, Nirmal Bang said in its Q4 results review note on Cipla.  

Nirmal Bang maintained a Buy rating on Cipla with a target price of Rs 1,138 per share (21 per cent upside) based on a 21x P/E multiple on FY24E EPS and believes that the risk-reward at the current market price remains favourable. 

Meanwhile, Morgan Stanley expects steady mid-teens growth for branded generics business and high-value complex launches in the US. It maintained an Overweight stance with a target price of Rs 1122 per share, which translates into a potential growth of almost 20 per cent 

The pharma company continues to build a robust pipeline of inhalers, complex injectables, and peptides for longer-term, the global brokerage firm said in its earnings review.