Angel Broking neutral on Cipla
Angel Broking has maintained a neutral rating on Cipla in its February 06, 2013 research report. According to the research firm, for FY2014, the Management of the company has given a revenue growth guidance of around 14% while the EBITDA margin is estimated to be at around 22%.
February 08, 2013 / 19:31 IST
Angel Broking has maintained a neutral rating on Cipla in its February 06, 2013 research report. According to the research firm, for FY2014, the Management of the company has given a revenue growth guidance of around 14% while the EBITDA margin is estimated to be at around 22%.
"Cipla's numbers have come in lower than expected on the bottom-line front, but in-line on the sales front (For 3QFY2013). The net sales and profits for the quarter came in at Rs 2,031cr and Rs 339cr, registering a growth of 18.7% yoy and 25.5% yoy respectively. However, the major positive highlight of the quarter is the improvement in the OPM, which expanded by 215bp yoy to 22.3% (vs 24.9% expected). For FY2014, the Management has given a revenue growth guidance of 15% yoy, while EBITDA margin is expected to be ~22%.Results lower than expectations: For 3QFY2013, the company reported lower-than-expected numbers on the bottom-line front. The net sales and profits for the quarter came in at Rs 2,031cr and Rs 339cr, registering a growth of 18.7% yoy and 25.5% yoy respectively. On the profitability front, the gross margin and operating profit margin came in much lower than expectations, at 60.7% and 22.3% respectively. Consequently the net profit came in at Rs 339cr, ie lower than expected, mainly on account of the lower-than-expected OPM.For FY2014, the Management has given a revenue growth guidance of around 14% while the EBITDA margin is estimated to be at around 22%. We expect the company's net sales to post a 14.0% CAGR to Rs 9,130cr and EPS to record a 23.2% CAGR to Rs 21.6 over FY2012–14E. We recommend a Neutral on the stock," says Angel Broking research report.Bodies Corporate holding more than 50% in Indian cos Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.To read the full report click on the attachment 
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