Accumulate Cipla; target Rs 360: Angel Broking

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Angel Broking has recommended an accumulate rating on Cipla , with price target of Rs 360, in its report dated January 28, 2010. The stock closed at Rs 317.30 on January 29, 2010.

"Cipla is likely to continue on growth trajectory following its entry into the EU inhaler market and potential of new long-term manufacturing contracts with Global Innovators. Further, aggressive capex rollout indicates the company's comfort levels on future growth. We expect Net Sales to post a CAGR of 12.0% to Rs 6,723 crore and EPS a CAGR of 12.6% to Rs 17.2 over FY2010-12E. At Rs 319, the stock is trading at 21.1x and 18.6x FY2011E and FY2012E Earnings. We maintain our Accumulate on Cipla with a 15-month target price of Rs 360," says Angel Broking report.

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