They were also disappointed with the margin guidance of 21-22% for the ongoing financial year. Shares of Cipla ended up 1.2% to close at ₹937.50 on Wednesday, recovering from early losses.
CLSA, Jefferies and
maintained a buy rating, Credit Suisse retained an outperform, and Morgan Stanley remains overweight on the stock post results.
“While the stock lacks immediate catalysts, a strong pipeline in the US starting in the second half of FY23 keeps us constructive, along with Cipla’s strong positioning in India and South Africa,” said CLSA. “We believe a 21 times FY24 price to earnings valuation is fair given Cipla’s long-term growth prospects and a favourable base for its US business,” the brokerage said.
has downgraded the stock to add from buy. “We cut our revenue and EPS estimates by 2% and 6-9% respectively to factor-in declining covid sales and higher costs,” said ICICI Securities.
