Nomura has reiterated a Buy rating on Cipla shares, with a target price of ₹1,760, suggesting upside from the current market price of ₹1,520.00. While the company reported an EBITDA miss in Q4FY25, the brokerage noted that the FY26 outlook remains intact.
Cipla’s management expects revenue growth in FY26 despite a decline in gRevlimid sales, which had been a key contributor in the past year. The company also guided for a FY26 EBITDA margin in the range of 23.5%–24.5%, reflecting continued cost discipline and operating leverage.
Nomura noted that Cipla shares are currently trading at 25x/24.4x FY26/27 forward earnings, which it considers reasonable given the company’s stable outlook and strong fundamentals across India, the US, and emerging markets.
The brokerage remains positive on Cipla’s long-term growth drivers, including its pipeline of respiratory and complex generics, even as short-term pressure from high base products like gRevlimid is expected to normalize.
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