Moneycontrol
Get App
Last Updated : May 18, 2020 04:59 PM IST | Source: Moneycontrol.com

Buy Cipla; target of Rs 670: ICICI Direct

ICICI Direct is bullish on Cipla has recommended buy rating on the stock with a target price of Rs 670 in its research report dated May 18, 2020.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on Cipla


Revenues remained flat at Rs 4376 crore YoY due to 25.1% YoY decline in US revenues to Rs 856 crore, attributable mainly to high base of gSensipar. On the other hand, domestic formulations grew 15.3% to Rs 1730 crore. EBITDA margins fell 735 bps YoY to 14.5% mainly due to a sharp drop in gross margins (61.4% vs. 66.3% in Q4FY19). EBITDA de-grew 34.1% YoY to Rs 633.5 crore. Net profit fell 33.0% YoY to Rs 246.0 crore due to a below expected operational performance. Delta vis-à-vis EBITDA was due to lower depreciation.


Outlook


Our revised target price is Rs 670 based on 22x FY22E EPS Rs 30.2. We upgrade the stock from HOLD to BUY


For all recommendations report, 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.




Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.
Get best insights into Options Trading. Join the webinar by Mr. Vishal B Malkan on May 28 only on Moneycontrol. Register Now!

First Published on May 18, 2020 04:59 pm
Sections
Follow us on