The target price indicates a potential upside of about 20.23% from the current market price.

The brokerage expects a series of near-term developments to support the stock. These include the anticipated approval of gFlovent from Cipla's Goa facility and the planned launch of gVentolin, both of which could strengthen the company's position in the US market.

The brokerage also highlighted the strong performance of Nintedanib in the US, where the product has captured nearly half of the market. It expects Cipla's US business to return to growth after a period of weakness.

The brokerage said the company's India business remains resilient, supported by a recovery in its respiratory portfolio. It added that a re-inspection of Cipla's Indore manufacturing facility is expected shortly, and a favourable outcome along with USFDA clearance could act as an additional trigger for the stock.

The brokerage further noted that easing geopolitical tensions have reduced concerns over raw material costs and margin pressures.

According to the report, the earnings impact from the decline in gRevlimid-related sales has largely played out, suggesting that Cipla's profit cycle may have bottomed out. The stock is currently valued at around 25 times FY27 estimated earnings and 21 times FY28 estimated earnings.

The brokerage said Cipla offers a compelling combination of domestic pharmaceutical exposure, improving US business prospects and attractive valuations. It noted that the company's India business is valued at 7.8 times FY26 sales, compared with 8.5 times for peer Mankind Pharma, making the risk-reward profile favourable.

Cipla is a global pharmaceutical company with operations across India, South Africa, North America and other regulated and emerging markets. The company focuses on complex generics and therapies including respiratory, anti-retroviral, urology, cardiology, anti-infective and CNS segments. Cipla operates 46 manufacturing facilities globally, producing more than 1,500 products across over 80 markets.

The drug major's consolidated net profit stood at Rs 554.64 crore in Q4 FY26, down 54.61% from Rs 1,221.84 crore in Q4 FY25. Revenue from operations declined 2.02% YoY to Rs 6,464.26 crore in Q4 FY26 from Rs 6,597.72 crore in the year-ago period.