Broking house, ICICI Securities expects that Cipla is to post net profit at Rs 209.2 crore (Rs 2.09 billion) in Q3FY07 compared to Rs 175.3 crore (Rs 1.75 billion) in the same quarter of earlier year, up 19.3% and revenues at Rs 924.2 crore (Rs 9.24 billion) versus Rs 750.6 crore (Rs 7.50 billion), up 23.1% YoY.

It is bullish on Cipla and has recommended buy rating on the stock.

The ICICI Securities report on Cipla:

The report says, “Exports would register a robust 32% growth to Rs 5.1 billion on the back of supply of two key products, Sertraline (Zoloft) and Finasteride (Proscar), to Cipla’s US partner Teva.”

“EBITDA margin to decline 303bps to 23.8% mainly due to a high base effect on the back of supply of exclusivity products to the company’s US partner.”

“The potential upside from Cipla’s broad-based US partnerships, continuing strong exports growth and utilisation of USD 170 million GDR proceeds over the next 2-3 years would boost earnings. Our 18-month DCF-based fair value is Rs 327.”