Cipla Q2 Review: Axis Securities Remains Positive On The Stock, Maintains 'Buy'

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Axis Securities Report

We expect Cipla Ltd. to deliver stable growth across key markets. In North America, new launches like gAbraxane and the recently launched Filgrastim (Cipla's first US biosimilar ) are likely to support performance. Existing products such as gAlbuterol are scaling up well, with Cipla having supplied over 50 Mn inhaler units since launch.

Lanreotide has reached a 22% market share and is gradually progressing toward its target. The contribution from gRevlimid is now expected to be virtually nil to very marginal in Q3 FY26, as its role is offset by the pipeline ramp-up.

Cipla’s upcoming US pipeline remains strong, with key launches lined up for H2 FY26, including generic Advair in Q4 FY26 and generic Symbicort in FY27 (as part of multiple respiratory and inhalation products).

The company is strategically positioned with its first US biosimilar launch and is investing in its long-term pipeline, targeting assets like complex generics and peptides.

Recommendation:

In the Indian market, growth is expected to stay in line with the pharma industry average of around 8% to 9%. This is supported by the strategic entry into obesity care with the launch of Yurpeak (Tirzepatide).

The South African business continues to perform well, driven by strong demand in the private and OTC segments, though the next two quarters are critical for execution towards margin expansion.

We remain positive on the stock with a Buy rating and arrive at a target price of Rs 1,700/share.

Key risks to our estimates and target price-

• The U.S. FDA inspection and issuing of warning letter/official action indicated or 483 observations may impact the revenue growth.

• Entry of new players may increase pricing pressure in the injectable portfolio.

• Delay in launching Biosimilars in the market.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.