Buy Cipla; target of Rs 694: Firstcall

Brokerage house Firstcall Research is bullish on Cipla and has recommended buy rating on the stock with a target price of Rs 694 in its research report dated November 18, 2014.

November 25, 2014 / 10:32 IST

26 Aug, 2025 12:21

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Firstcall Research report on Cipla

"Cipla is an extensive range of pharmaceutical and personal care products have brought health and happiness to millions of people the world over – combining technology and quality with affordability, The company presence in over 170 countries, portfolio includes 2000 products in 65 therapeutic categories with one quality standard globally. Reported its financial results for the quarter ended 30th Sept, 2014."

"The company’s Revenue for the 2nd quarter of FY15 rose by 6.06% to Rs. 24896.30 million from Rs. 23474.40 million, when compared with the prior year period. Net profit stood at Rs. 3360.70 million against Rs. 3760.30 million in the corresponding quarter ending of previous year. Reported earnings per share of the company stood at Rs. 4.19 a share during the quarter compared to Rs. 4.68 over previous year period. Profit before interest, depreciation and tax is Rs. 5770.90 million as against Rs. 6174.50 million in the corresponding period of the previous year."

"At the current market price of Rs.608.85, the stock P/E ratio is at 34.65 x FY15E and 32.49 x FY16E respectively. Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs.17.57 and Rs.18.74 respectively. Net Sales and Operating profit of the company are expected to grow at a CAGR of 12% and 3% over 2013 to 2016E respectively. On the basis of EV/EBITDA, the stock trades at 20.92 x for FY15E and 19.16 x for FY16E. Price to Book Value of the stock is expected to be at 4.25 x and 3.78 x respectively for FY15E and FY16E. We recommend ‘BUY’ in this particular scrip with a target price of Rs 694 for Medium to Long term investment", says Firstcall Research Report.

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