Cipla share price: HSBC expects 13% upside for the stock post Q1 results on firm US prospects.

Stock Market today: Cipla share price that has gained more than 24% year to date is trading near 52 week highs it scaled on Friday. Cipla had reported strong Q1 performance with net profit rising 17% YoY largely helped by improved operating performance as reported Ebitda grew 14% though revenue grew t a slower pace of 7% year-on-year.

While India Business contributing more than 40% to overall grew 5%, The strong US sales growth lifted the show.

Robust US performance- Cipla's US sales at $250 million contributing 31.2% to the first quarter revenue) grew 12.6% y-o-y and10.6% sequentially. The same was helped by market share gains for key launches like hormone drug lanreotide, respiratory inhaler albuterol generics as well as well supported by higher generic Revlimid sales .

Cipla further has indicates that it should sustain US sales of $235-240 mullion in remaining quarters of FY25, which remains a key positive

Analysts at HSBC Securities and Capital Markets (India) Pvt Ltd believe lanreotide generic has plenty of room to grow as the brand still holds 78% share of the overall lanreotide market. Further there are three more peptides launches planned by Cipla over the next 12 months starting in 2HFY25. HSBC analysts say that the traction in existing products and peptide launches should help Cipla to sustain US sales growth in FY25 and beyond. This should also ease concerns regarding delays in the launch of respiratory products, as generics of Abraxane and generic Advair which remain delayed due to pending plant clearances by USFDA.

For the domestic business growth , Cipla has highlighted that India Branded Prescription Business grew at a healthy rate of 10% yoy. it was the softness in Trade Generics Business owing to distribution model change that led to softer overall growth for Cipla Business.

HSBC continues to like Cipla’s healthy outlook in key segments (India, South Africa, the US), delivery on cost efficiencies, and prudent capital allocation. Notable HSBC says that the pipeline products – inhalers and peptides should provide comfort for the growth outlook of US sales despite a high base. Their target price for Cipla revised upwards to ₹1,775 (from ₹1,680) indicates more than 13% uspide for Cipla share price.

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