Its consolidated operating profit, calculated as earnings before interest, taxes, depreciation, and amortization (EBITDA), experienced a 31% YoY growth to Rs 1,494.02 crore. The operating margin expanded significantly by 234 basis points to 23.6%.
Cipla’s India business witnessed strong growth across branded prescription, trade generics, and consumer health over the past year, leading to a 12% growth in the One-India franchise.
The US business achieved its highest-ever revenue of $222 million, demonstrating a 43% YoY growth driven by a robust momentum in the differentiated portfolio.
At 10.25 am, the stocks were trading 8.5% higher at Rs 1.160 on BSE. During the last year, it has surged by 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 strong performance in the US resulted in better-than-expected Q1 results. The management’s commentary also provides positive insights. The global investment bank increased 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% higher than our estimates, boosted by higher gross margins and US sales of US$222mn. We continue to remain optimistic about growth in key segments, including India and the US, given the strong traction in the respiratory and other portfolios, potential growth of +10% in domestic formulations, and the sustainability of current US revenues, supported by upcoming key launches over FY25,” it stated.
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 strong performance in the US and India. While there is optimism regarding near-term generics pricing in the US, Cipla has increased its US sales and EBITDA margin guidance for FY2024. The launch timelines for key US molecules remain unchanged. Apart from the US, the outlook in India and the SA private market remains positive,” it said.
“While we are still awaiting the classification of the Pithampur inspection by the US FDA, we have considered an OAI. Despite the regulatory setbacks, we expect Cipla to achieve a robust 19% EPS CAGR over FY2023-26E,” Kotak stated.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)