Prabhudas Lilladher's report on CiplaPerformance marginally below estimates; Revenue guidance for FY16 revised upwards: Cipla reported 28%, 66% and 44% YoY growth in Sales, EBITDA and PAT, respectively, in Q2FY16. Sales of Rs 33.6bn were lower than our estimates of Rs35.4bn due to tepid domestic sales and lower growth in export formulations. Better contribution of Nexium helped to report Adj. EBITDA margin of 20.8% v/s our estimates of 20.1%Valuation - Maintain ‘Accumulate’; retain TP at Rs781: With traction of revenues from supply of products to partners (Nexium, Pulmicort), management increased FY16 guidance of sales growth to 21-22% from 20% earlier. The FY16 EBITDA margin guidance was maintained at 100-150bps higher than FY15. The guidance also implied lower sale and EBITDA in H2FY16E in comparison to H1FY16. We have already factored better sales growth due to supply of Nexium and Pulmicort in FY16E. We maintain ‘Accumulate’ and retain TP at Rs 781, says Prabhudas Lilladher research report.For all recommendations, click here 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.
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