Motilal Oswal Retains Neutral Rating To Large Cap Pharma Stock, TP Rs 990

Motilal Oswal has assigned neutral call to large cap pharmaceuticals sector stock, Cipla Ltd with a target price of Rs 990 apiece, implying an upside of 10%. Last trading price of Cipla is Rs 899.85 apiece.

According to the analyst, "We cut our earnings estimate by 3% for FY24 to factor in the delay in g-Advair approval, due to observations in form 483. The Official action indicated (OAI) at Goa and the recent form 483 at Indore increase the overall regulatory risks from US generics business perspective." Check details below:

1. Cipla Ltd Share Performance & Return

The last trading price of the stock is Rs 899.85 apiece. The company has a market capitalisation of Rs 72,630.85 crore. The stock's 52-week high is Rs 1185.20 apiece and 52-week low is Rs 890.00 apiece, respectively.

The stock fell 20% in last 3-months and 2% in last 1-year. It gave 123% return in last 3-years.

2. Valuation

According to Motilal Oswal, "We value Cipla on an SoTP basis (21x 12M forward earnings and INR40 as NPV for g-Revlimid) to arrive at a price target of INR 990. Considering a) moderate earnings growth and b) valuation providing limited upside potential, we reiterate our Neutral rating on the stock."

3. About Cipla Ltd

Cipla, as an organisation has been built brick-by-brick on the foundation of care. Caring For Life has always been and continues to remain, its guiding purpose. Driven by the same purpose, it has extended its presence to 80+ countries providing over 1,500 products across various therapeutic categories in 50+ dosage forms. To make healthcare more affordable globally, it is deepening its presence in the key markets of India, South Africa, the U.S. among other economies of the emerging world, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.