Brokerages remain bullish on Cipla after its Q3 FY25 results, highlighting strong earnings, improving margins, and upcoming US launches. Both HSBC and Nomura have maintained a ‘Buy’ rating on the stock with targets of ₹1,800 and ₹1,780, respectively.
HSBC on Cipla: Maintains ‘Buy’, target ₹1,800
HSBC has reaffirmed its bullish stance on Cipla, citing strong Q3 performance and an improving margin outlook.
- Q3 PAT exceeded estimates, driven by a better sales mix, lower R&D expenses, and one-off gains.
- FY25 EBITDA margin guidance has been raised, indicating better profitability ahead.
- Upcoming product launches in the US will be key growth drivers.
- Lanreotide supply is expected to normalize by Q1 FY26, easing previous supply chain concerns.
- FDA approvals for key drugs like Abraxane and Advair are seen as major catalysts for the stock.
Nomura on Cipla: Maintains ‘Buy’, target ₹1,780
Nomura has also retained its ‘Buy’ rating, highlighting a strong Q3 performance while flagging concerns over delays in key US drug launches.
- Q3 earnings were ahead of estimates, reinforcing Cipla’s solid operational performance.
- However, delays in major US product launches have impacted FY26 estimates.
- Despite short-term setbacks, Nomura remains confident in Cipla’s long-term growth prospects and retains FY27 earnings estimates.
Market Outlook
Cipla remains a preferred pick among brokerages, with both HSBC and Nomura projecting significant upside potential. The strong earnings, improving margins, and US pipeline of differentiated drug launches are expected to support growth, though near-term risks include regulatory delays and supply chain challenges.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult professionals before making investment decisions. Business Upturn is not responsible for any investment outcomes based on this report.
