February 11, 2017 / 14:49 IST
Edelweiss' research report on Cipla Cipla’s revenue/EBITDA/PAT grew 16%/46%/44% YoY, in line with estimates, but benefited from non-recurring portion in ‘other income’. Margins remained stable for the third successive quarter, largely driven by aggressive cost control measures. However, it may be a challenge to improve margins beyond this level unless top-line growth improves organically.
OutlookThe board has undertaken an enabling resolution of fund raising up to INR 40bn, to consider acquisition in the US specialty space. Key monitorables would be monetisation of Sereflo in UK and filing of Advair MDI in US. Maintain ‘HOLD’ with rolled TP of INR 500 (20x FY19E EPS).
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