Pharma major Cipla not in the pink of health; growth challenges galore

Brokerages slash target price after subdued Q2 show

Shares of pharmaceutical major Cipla dropped over 4 per cent on Wednesday at Rs 1,417 per share after analysts highlighted near-term challenges following a muted performance in the second quarter results for the current financial year (Q2FY25).

 

In Q2FY25, Cipla’s domestic business underperformed due to seasonal weakness in the anti-infective and trade generics business. However, this was offset by strong growth in Africa, emerging markets, and European business, said analysts. Growth for Cipla was lower in the US and India than analyst estimates.

 

“The narrative for Cipla has worsened in the recent past, driven by US prospects and a slowdown