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Most brokerages bullish on Cipla; cite US, local market growth potential

29 Jan , 2022   By : Kanchan Joshi


Most brokerages bullish on Cipla; cite US, local market growth potential

Mumbai: Most brokerages maintained a bullish view on Cipla citing the pharmaceutical major's healthy pipeline of product launches in the United States and growth in the domestic market. Shares of Cipla ended up at Rs932.15 on Friday.


"We expect steady mid-teen growth for the branded generics business and high value complex launches in the US. The company continues to build a robust pipeline of inhalers, complex injectables and peptides for the longer term," said Morgan Stanley, maintaining an overweight rating with a target price of Rs1,122.


Edelweiss has maintained a buy rating with a target price of Rs1,100. Emkay, HSBC, CLSA and IIFL have also maintained buy ratings. ICICI Securities has upgraded the stock to buy from add.


"The company has shown a strong performance over the past 5-6 quarters in India business led by Covid-19 portfolio as well as benefits of one India strategy undertaken in FY20 which we believe would help in sustaining above industry growth. Its US business is expected to scale up on account of complex launches," said ICICI Securities. Cipla on Tuesday posted a 2.61% year-on-year decline in December quarter consolidated net profit at Rs728.6, which was higher than analysts' estimates.


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