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

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.


Outlook


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


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First Published on Nov 14, 2018 04:43 pm
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