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Last Updated : Nov 14, 2018 04:43 PM IST | Source:

Hold Cipla; target of Rs 510: ICICI Direct

ICICI Direct recommended hold rating on Cipla with a target price of Rs 510 in its research report dated November 06, 2018.

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ICICI Direct's research report on Cipla

Cipla’s Q2FY19 results were weaker-than-expected on the operational front. Revenues de-grew 1.7% YoY to Rs 4012 crore (I-direct estimate: Rs 4042.4 crore) mainly due to high base of restocking in the domestic market and a fall in the tender opportunity in South Africa and other emerging markets EBITDA margins contracted 220 bps YoY to 17.5% (I-direct estimate: 19.1%) due to higher other expenditure and employee cost. EBITDA de-grew 12.7% YoY to Rs 702.2 crore (I-direct estimate: Rs 771 crore) Net profit fell 15.6% YoY to Rs 356.8 crore (I-direct estimate: Rs 368.9 crore) mainly due to a below expected operational performance.


Accordingly, we reduce our EPS estimates for FY19E, FY20E by 22%, 18% to Rs 17.5, Rs 23.1, respectively. Accordingly, our new target price is Rs 510 based on 22x FY20E EPS.

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 Nov 14, 2018 04:43 pm
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