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Last Updated : Aug 10, 2020 01:01 PM IST | Source: Moneycontrol.com

Buy Cipla; target of Rs 900: ICICI Direct

ICICI Direct is bullish on Cipla has recommended buy rating on the stock with a target price of Rs 900 in its research report dated August 09, 2020.

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ICICI Direct's research report on Cipla


Q1 revenues grew 9.0% YoY to Rs 4346 crore due to 15.9% YoY growth in domestic formulations to Rs 1608 crore. US revenues declined 8.8% YoY to Rs 1021 crore. RoW markets grew 53.1% YoY to Rs 672 crore due to base effect. EU grew 19.4% YoY to Rs 240 crore. EBITDA margins improved 145 bps YoY to 24.1% on account of a sharp drop in other expenditure amid Covid lockdown, partly offset by lower gross margins due to higher contribution from margin dilutive trade generics segment. Subsequently, EBITDA grew 15.9% YoY to Rs 1049 crore. Net profit grew 21.4% YoY to Rs 578 crore in line with the operational performance.



Outlook


Across the board transformation from tenderised model to private model in exports market and towards rapid consumerisation of important TGx, Rx in India bode well to change the investors’ perspective. Our revised target price is Rs 900 based on 25x FY22E EPS Rs 36.0.


For all recommendations report, click here


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First Published on Aug 10, 2020 01:01 pm
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