Cipla Q3 Results Review - Strong All-Round Performance: Nirmal Bang

Nirmal Bang Report

Cipla Ltd.'s Q3 FY24 results were in line with our/consensus estimates on all fronts, led by industry-beating growth in the domestic market, strong traction in the U.S. and SAGA regions and margin improvement.

The U.S. business reported the highest-ever quarterly revenue of $230 million as price erosion stabilised on the back of drug shortages. With strong growth witnessed across major geographies, Cipla has again raised its Ebitda margin guidance for FY24 to 23-24% from 23% earlier.

We remain positive about Cipla mainly due to high contribution from the branded business, robust India franchise, healthy U.S. pipeline, decent margins and improving return ratios.

We maintain 'Buy' on Cipla with a revised target price of Rs 1,532, valuing it at 23 times on December 2025E base business earning per share of Rs 66.10 and net present value of Rs 12.30 for the Revlimid opportunity.

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