Buy Cipla with upside potential of 32.23% for a target period of 12 months
Brokerage firm ICICI Securities has a bullish outlook on the stock of global pharmaceutical major Cipla. The company has set a price target of Rs. 1,205 on the certificate, which implies an increase of 32.23% from the current market price of Rs. 911.30 in a short term of 12 months.
The company reported spectacular results for the first quarter of fiscal 22, with sales up 26.6% year-over-year from Rs. 5,504 crores. EBITDA also saw growth during the same period and was Rs. 1345.9 crore, up 28% year-on-year with margins of 24%.
The brokerage firm said in its report, âWe are maintaining BUY as we continue to focus on its core strength of following a calibrated approach of focusing more on branded products and core therapies across the globe. “. âWe rate Cipla at Rs. 1205, or 28x P / E on FY23E EPS + Rs. 41 NPV for gRevlimid.
According to ICICI Securities, some of the triggers that will help Cipla’s share price rise include the company’s strategy to focus on 4 verticals namely One-India, South Africa and EM, US Generics and Specialty and lung leadership. In addition, the company is focusing on the front-end model for the United States in particular, and is gradually shifting from HIV and other loss-making tenders to more profitable respiratory and other opportunities in the United States and the EU.
|Current market price||Rs. 911.3|
|Target price||Rs. 1205|
Alternative stock idea: In addition to Cipla, in terms of health coverage, ICICI Securities is bullish on Sun Pharma. “A higher contribution from the specialty and the strong national franchise is likely to shift the product line towards more profitable activities by FY23”.
Buy Tata Communications with upside potential of 16.37% over 12 months
Brokerage firm ICICI Securities has issued a tender for the shares of global digital ecosystem facilitator Tata Communications with a target price of Rs. 1,725, which implies a 16.37% increase from the last price. traded from the script for Rs. 1482.35.
ICICI Securities believes that the growth of the telecommunications company will be facilitated by platforms such as a) cloud, edge, security, b) next generation connectivity, c) NetFoundry d) MOVE, IoT , each with a robust growth potential in market size of 15-25% CAGR in the next four to five years. âWe expect a CAGR of approximately 8% of revenue in fiscal years 21-23E across the data segment, driven by a likely acceleration in growth from S2FY22. Strong generation of cash flow to facilitate deleveraging, âadded the brokerage firm.
|Tata Communications Current Market Price||Rs. 1482.35|
|Target price||Rs. 1725|
Alternative stock idea: In the telecom industry except Tata Communications, ICICI Securities likes Bharti Airtel’s script and recommends buying it for a target price of Rs. 720 compared to the current price of Rs. 607.9, which means a upside potential of over 18%. âA play on a favorable industrial structure – a good boost for a possible tariff increase as well as a superior digital play in the medium to long term,â the brokerage report said.
Investing in the stock market is risky and you have to be even more careful when the markets are approaching record highs. The investments listed in the story are taken from the brokerage report and are for informational purposes only. These should not be interpreted as investment advice.