IIFL Securities Stock Idea: Buy Cipla with Target Rs 1732

IIFL Securities has issued a buy recommendation for Cipla, with a target price of Rs 1732, representing a potential upside of over 2.5% from its current market price of Rs 1689.3. This bullish outlook is based on the company's strong earnings performance, driven by its respiratory and chronic therapies portfolio and expansion into new markets. IIFL Securities believes Cipla's focus on innovation and product launches will continue to support its growth trajectory in the coming quarters.

About Cipla:

Cipla Limited, listed on the National Stock Exchange (NSE) of India, is a global pharmaceutical company headquartered in Mumbai, India. Established in 1935, Cipla is one of the leading pharmaceutical companies in India and has a strong presence in over 60 countries. The company's product portfolio includes a wide range of drugs and treatments for respiratory, cardiovascular, anti-infective, and other therapeutic areas. Cipla is committed to providing high-quality, affordable medicines and has a strong focus on research and development. The company's mission is to "Make Healthcare Affordable for All."

52 Week Price Trend:

Cipla's current market price (CMP) of Rs 1689.3 is significantly higher than its 52-week low of Rs 852, indicating a substantial 98% gain. However, it is important to note that the stock is still below its 52-week high of Rs 1484.1, suggesting potential for further growth. Cipla's strong performance in recent months has been driven by factors such as increased demand for healthcare products due to the pandemic, successful drug launches, and a growing international presence. Analysts remain bullish on the stock, with many expecting continued growth in the coming quarters.

Stratzy's MOST Analysis:

CIPLA has been assigned a BBB rating by Stratzy's MOST framework. This rating indicates that CIPLA possesses medium fundamental risks, with moderate levels of risk in management, outlook, safety, and trend. The MOST framework evaluates stocks based on four key pillars, assigning scores for each pillar and combining them to determine an overall rating. CIPLA's BBB rating suggests that it has a relatively stable management team, a favorable industry outlook, adequate financial safety, and a generally positive market trend.

Company's Fundamentals:

Cipla (NSE: CIPLA) is a pharmaceutical company based in India with a current stock PE (Price-to-Earnings) ratio of 30.06. This PE ratio indicates that investors are willing to pay 30.06 times the company's annual earnings per share for a single share of stock. Cipla also has a PB (Price-to-Book) ratio of 4.78, indicating that its market value is 4.78 times its book value. Additionally, Cipla has a dividend yield of 0.58%, meaning that investors receive 0.58% of their investment as dividends annually.

Fundamental and Technical information provided in this blog were last updated on 08 Oct, 2024

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