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Last Updated : Nov 13, 2015 12:33 PM IST | Source: Moneycontrol.com

Buy Cipla; target of Rs 750: Firstcall Research

Firstcall Research is bullish on Cipla and has recommended buy rating on the stock with a target of Rs 750 in its November 09, 2015 research report.

 
 
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Firstcall Research report on Cipla

Cipla Ltd laid foundations for the Indian pharmaceutical industry back in 1935 with the vision to make India self-reliant in healthcare and is one of the largest exporters of pharmaceutical products from India and has a strong presence in over 150 countries. In Q2 FY16, Consolidated Net profit Jumps to 44.38% yo-y of Rs. 4312.40 million as compared to Rs. 2986.80 million in Q2 FY15. The company’s consolidated Revenue for the 2nd quarter of FY16 rose by 41.65% of Rs. 34524.10 million compared to Rs. 27672.90 million for the 2nd quarter of FY15.

Outlook and Valuation

At the current market price of Rs.657.95, the stock P/E ratio is at 28.30 x FY16E and 23.76 x FY17E respectively. Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs.23.25 and Rs.27.69 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 19 & 10%% over 2014 to 2017E respectively. On the basis of EV/EBITDA, the stock trades at 15.13 x for FY16E and 12.98 x for FY17E. Price to Book Value of the stock is expected to be at 4.29 x and 3.80 x respectively for FY16E and FY17E. We recommend ‘BUY’ in this particular scrip with a target price of Rs.750.00 for Medium to Long term investment.

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First Published on Nov 13, 2015 12:33 pm
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