Last Updated : Sep 18, 2018 01:40 PM IST | Source:

Buy Cipla; target of Rs 750: Centrum

Centrum is bullish on Cipla has recommended buy rating on the stock with a target price of Rs 750 in its research report dated August 09, 2018.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

Centrum's research report on Cipla

We maintain buy rating for Cipla and revise our TP to Rs750 (earlier Rs730) based on 24x March’20E EPS of Rs31.1. Cipla’s Q1FY19 revenues and EBIDTA margin were in line with our and consensus estimates. However, net profit exceeded our expectations. Cipla’s revenues grew 12% YoY, margin improved 10bps to 18.4% and net profit grew by 5%YoY to Rs4.46bn from Rs4.25bn. The domestic business (39% of revenues) grew 22% YoY on a lower base in Q1FY18 due to GST uncertainties. Steady growth in the domestic market, with leadership position in respiratory, oncology and anti-infective segments would drive future growth.


We maintain Buy rating for Cipla and revise our TP to Rs750 (earlier Rs730) based on 24x March’20E EPS of Rs31.1, and with an upside of 18.5% over CMP. We have revised our FY19E downwards by 2% and FY20E upwards by 3%. We expect the domestic and South African businesses to drive future growth. Key risks to our assumptions include slow growth in the domestic market and regulatory risks for its manufacturing facilities catering to global markets.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

First Published on Aug 13, 2018 04:20 pm
Follow us on
Available On
PCI DSS Compliant