CSL Limited

This report is an updated version of the report published on 13 June 2025 at 11:45 AM AEST 

Section 1: Company Overview, Low Carbon Emission Initiatives and Fundamentals

Section 1.1: CSL Limited (ASX: CSL) is engaged in the research, development, manufacturing, marketing and distribution of biopharmaceutical products and vaccines. The ASX-listed biotechnology company includes three businesses, CSL Behring, CSL Seqirus and CSL Vifor. Kalkine’s Low Carbon Research Report covers the Investment Highlights, Low Carbon Emission Initiatives, Key Financial Metrics, Risks, and Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

Section 1.2: Why Low Carbon Emission Matters?

The shift toward a low-carbon economy is one of the most significant challenges of current time, spurred by the urgent need to combat climate change and reduce the environmental impact of corporate activities. This report covers the ASX-listed low-carbon emission company, CSL Ltd (ASX: CSL), that is committed to sustainability and responsible environmental practices.

Carbon and Waste Management - Key Metrics

CSL has demonstrated progress in its sustainability efforts, particularly in reducing carbon emissions, as evidenced by a nearly 37% decline in CO₂ emissions per million dollars of revenue from 2020 to 2024—well aligned with its 2030 target of a 40% reduction in Scope 1 and 2 emissions. This reflects the company’s ongoing shift to renewable electricity, including a commitment for all Australian manufacturing facilities to use 100% renewable power by January 2025. While total waste per revenue also declined from 2020 levels, a recent uptick in 2024 suggests the need for renewed focus to stay on track with its “Zero Waste” ambition by 2030. Overall, CSL’s integrated approach—spanning energy, waste, water, packaging, and climate-resilient design — underscores its long-term commitment to sustainable operations.

Peer Comparison: Carbon Emission and Waste Management Metrics

The peer comparison chart highlights CSL Limited’s distinct position among ASX-listed healthcare peers in terms of its carbon emission and waste management initiatives. CSL has set a 2030 target to reduce Scope 1 and 2 emissions by 40%, a relatively near-term and concrete goal compared to many peers aiming for 100% reduction by 2050. Despite reporting the highest total CO₂ equivalent emissions (351,000 tonnes), this reflects CSL's larger operational footprint and more advanced emissions tracking systems. The company’s waste recycling ratio stands at 48%, matching Healius Ltd but trailing behind peers like Sigma Healthcare (71.21%) and Ansell (99.8%). However, CSL’s broader sustainability roadmap, including transitioning to 100% renewable electricity in Australian operations by January 2025, zero growth in water use at key sites, and a target to divert over 90% of manufacturing waste from landfills by 2030, signals a serious commitment to environmental performance. Furthermore, CSL is one of the few companies proactively engaging suppliers to set SBTi-aligned targets, positioning it as a leader in Scope 3 emissions governance. Backed by environmental risk framework and global sustainability alignment, CSL’s climate strategy reflects both operational scale and ambition, setting it apart despite current high emissions.

1.3 The Key Positives, Negatives, Investment Highlights, and Risks

 1.4 Top 10 Shareholders:

The top 10 shareholders together form ~21.44% of the total shareholding. State Street Global Advisors Australia Ltd. and The Vanguard Group, Inc., hold maximum stakes in the company at ~5.01% and ~4.98%, respectively.

1.5 Key Metrics: CSL's cashflow from operations increased by 18% annually to USD 1,259 million in H1FY25. Below are captured other metrics:

Section 2: Business Updates, Financial and Operational Highlights

2.1 Recent Business Updates:

2.2 H1FY25 Results Highlights

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

The stock price has declined by ~4.48% in the last three months, whereas over the last six months, it has fallen by ~13.94%. The stock has a 52-week low and 52-week high of AUD 228.610 and AUD 313.550, respectively, and is currently trading below the midpoints of its 52-week low and 52-week high. CSL was last covered in a report dated ‘28 April 2025’.

4.2 Fundamental Valuation

Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 13 June 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement.

Note 5: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.