Buy Cipla, says P-Sec

P-Sec report on Cipla:

"Cipla reported 33% y-o-y growth in topline during Q2 FY07 while the net profit grew by strong 47% driven by robust 120% growth in APIs exports. The domestic business witnessed a growth of over 22% while the formulations exports business grew by 13%. The company maintained the operating profit margin over 25% and the net profit margin at over 20%. Total exports business grew by 37% driven by good performance in anti-retroviral, anti -depressants and cardiovascular segments."

"The company has set up a wholly owned subsidiary at Dubai to aid logistics and explore new export opportunities. It has also set up a new Export Oriented Unit at Patalganga and commercial production has commenced in the facility. At CMP of Rs 262, the stock is trading at 27.5x FY07E and 21.6x FY08E earnings. We maintain buy on the stock."