Moneycontrol Be a Pro
Get App
powered by
Maharashtra
BJP+ : 147
INC+ : 96

Need 49 more seats to win

Haryana
BJP : 38

Need 8 more seats to win

INC : 32

Need 14 more seats to win

*Wins + Leads
Last Updated : Feb 11, 2019 04:28 PM IST | Source: Moneycontrol.com

Hold Cipla; target of Rs 545: ICICI Direct

ICICI Direct recommended hold rating on Cipla with a target price of Rs 545 in its research report dated February 07, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on Cipla


Q3FY19 results were in line on the operational front but net profit was higher than I-direct estimates due to higher other income. Revenues grew 2.4% YoY to Rs 4007.5 crore (I-direct estimate: Rs 4081.6 crore). A 31% YoY growth in the US to Rs 849 crore (I-direct estimate: Rs 781.2 crore) was largely offset by 1% decline in domestic market to Rs 1585 crore (I-direct estimate: Rs 1681.1 crore) EBITDA margins contracted 326 bps YoY to 17.7% (I-direct estimate: 17.0%) due to lower gross margins and higher employee cost. EBITDA de-grew 13.6% YoY to Rs 707.7 crore Net profit declined 17.1% YoY to Rs 332 crore (I-direct estimate: Rs 290.1 crore) due to lower operational performance.


Outlook


The key highlight of the result was strong traction in the US business both on YoY and QoQ terms. The US business has now almost completely transformed into direct to market (DTM) thus giving the company enough flexibility to leverage on its capabilities in a tough market like US. On the Africa front, the company continues to rebase its business model towards private business in the backdrop shrinking tender opportunities. India was muted during the quarter but remains on course of double digit growth in the long run. This transformation across geographies from tenderised model to public model is likely to continue for some time. This may have some implications on margins initially. We ascribe a target price of Rs 545 based on 20x FY21E EPS.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.




Assembly Election 2019 Results Updates:
Catch Maharashtra Election Result 2019 updates, news and views here
Catch Haryana Election Result 2019 updates, news and views here
Catch Bypoll Results 2019 updates, news and views here

For full coverage, click here.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Feb 11, 2019 04:28 pm
Loading...
Sections
Follow us on
Available On