Buy Cipla: target of Rs 1610: ICICI Securities

Moneycontrol • 4 days ago

Original source

Key Investment Pillars

  • Cipla's US sales are expected to recover with the launch of new products, including gVentolin and gAdvair, and a target of USD 250mn in quarterly US sales by Q4FY27.
  • The company's branded business in India continues to deliver healthy growth, supported by strong performance across chronic therapies, with a growing presence in the GLP-1 market.
  • Cipla's net cash balance of INR 98.2bn provides significant financial flexibility to pursue acquisitions in the US and Europe.
  • The company has maintained its FY27 EBITDA margin guidance of 18.5-20%, supported by expectations of further improvement in H2FY27.

Thesis Validation Checklist

  • Investors should watch for the successful launch of new products in the US, particularly gVentolin and gAdvair, and the achievement of the target USD 250mn quarterly US sales run-rate by Q4FY27.
  • The growth momentum of Cipla's branded business in India, particularly in chronic therapies and the GLP-1 market, should be monitored.
  • The company's ability to maintain its EBITDA margin guidance and deliver sequential improvement in margins will be crucial.
  • Any updates on the company's plans for acquisitions in the US and Europe, utilizing its net cash balance, should be closely followed.