Significant value-accretive acquisitions and visibility to sustain growth by moving up the complexity levels (inhalers and biosimilars) could justify a higher valuation multiple, it feels.
Shares of Cipla fell 2.6 percent intraday Friday. Brokerage CLSA downgraded the stock to a sell from underperform with target price of Rs 619 as it believes results of transformation could take longer than expected.
Analysts feel profit after tax of Cipla may come in as low as Rs 300 crore during the quarter due to margin pressure.