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* India Business: The India business reported revenues of INR 28,984mn (+4.6% YoY /19.9% QoQ). With respiratory expanding by 9%, cardiac by 11%, and urology growing by 15%, chronic therapies outperformed the market. The portfolio's overall chronic mix increased by 106bps to 61.5%. The transition of the India Trade Generics Business into a new distribution model will enable the company to enhance supply chain management. In the upcoming years, the management aims to outpace the IPM. The majority of the capital allocation will be in India with a focus on respiratory therapy.

* Outlook & Valuation: Cipla’s top objective for One India going forward is to grow ahead of the market in the branded prescription segment, strengthening the wellness portfolio, commercial execution in the US market, and margin expansion by 100bps in FY25. We expect Revenue/EBITDA/PAT CAGR of 10.6%/13.6%/15.8% during FY24-FY26E. We value the stock at 24x FY26E EPS to arrive at a target price of INR 1,702 with a BUY rating.

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