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Cipla is one of India’s leading pharma company with exposure to the US generics market and South Africa, where it is the third largest player. Over the years, Cipla has developed a front end presence in the US as against its earlier strategy of operating through partnerships. Recent acquisitions and new launches in US for inhalers should drive growth. A notable aspect of Cipla is its strong regulatory compliance with least issues with US FDA as compared to its peer group. We have an over weight rating on the stock due to long term focus on profitable growth from differentiated products and impressive volumes in the domestic formulation division. Valuations are fair but there could be earnings volatility. Impact of Covid-19 pandemic has been restricted due to essential nature of products – 12-08-2021 Price: 905.05 Rating: Over Weight Recommendation: Buy

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