Hold Cipla; target of Rs 470: ICICI Direct

ICICI Direct's research report on Cipla

Formulation exports constitute 56% of total revenues. To improve the quality of exports, Cipla has undertaken scores of measures of late. Partnership deals and participation in global tenders were growth drivers in the past for exports.

Outlook

The India business is also likely to witness disruption due to GST rollout, as per management. Our revised target price is Rs 470 (from Rs 575 earlier) based on 18x FY19E EPS of Rs 26 as the company remains at the inflection point.