Cipla shares gain; Kotak upgrades stock to 'Buy' from 'Add'; check target

Cipla's extensive portfolio includes over 1,500 products spanning multiple therapeutic areas, such as respiratory, oncology, cardiology, and more.

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Cipla shares rose 2.4 per cent in trade and recorded an intraday high at Rs 1,483.4 per share on BSE. On NSE, 1.022 million shares changed hands, while on BSE 0.019 million shares were traded.

 

Around 10:16 AM, Cipla share price was up 1.51 per cent at Rs 1,470.05 per share on BSE. In comparison, the BSE Sensex was down 0.60 per cent at 81,258.79. The market capitalisation of the company stood at Rs 1,18,723.3 crore. The 52-week high of the stock was at Rs 1,702 per share and the 52-week low was at Rs 1,192.85 per share. 

 

Cipla is a global pharmaceutical company headquartered in Mumbai, India. Established in 1935 by Khwaja Abdul Hamied, Cipla has grown to become a significant player in the pharmaceutical industry, offering a diverse range of products across various therapeutic areas.

 

Its extensive portfolio includes over 1,500 products spanning multiple therapeutic areas, such as respiratory, oncology, cardiology, and more.  The company operates in over 80 countries, with a strong presence in emerging markets and established markets like the United States and Europe.

 

Kotak Institutional Equities has upgraded its rating to 'Buy' from 'Add' for a target price of Rs 1,725 per share. The brokerage believes that the stock is at a reasonable valuation. 

 

"With valuations at a reasonable around 24x ex-gRevlimid FY2027E P/E, we believe most of the concerns cited above are already baked in," the report read.

 

Further, analysts at Kotak have lowered Cipla’s FY2025-27E earnings per share (EPS) by 1-3 per cent to bake in an increased possibility of a delay in the gAbraxane launch as well as relatively softer growth in domestic

respiratory sales in 3QFY25.

 

As per the analysts, the pharma company's stock price has been bogged down by various factors including the increasing possibility of a Product Approval Information (PAI) for gAbraxane, anticipation of a slightly subdued 3QFY25 due to transient factors such as slower pick-up of domestic respiratory season and supply issues for Lanreotide and the recent promoter stake sale.

 

In the past one year, Cipla shares have gained 19 per cent against Sensex's rise of 14 per cent.