Cipla Ltd. share price target

Q4FY18 sales was flat YoY as the growth in India and South Africa was offset by decline by other segments. India sales grew 13% YoY at ` 13.5bn, constituting 37% of the sales, adjusted for GST grew by 21%. US sales stood at ` 6.8bn (up 4% YoY and QoQ), constituting 18% to Q4 sales. OPM stood at 10% vs 12% YoY. EBITDA grew 10% YoY to ` 5.7bn with margins...

US revenues declined ~2% YoY impacted by continued pricing pressure and lower contribution from limited competition drug launches during the quarter. EBITDA margin rose 230bps YoY in Q3FY18 led by gross margin improvement...

Cipla Limited has reported quarterly revenues of Rs 3,914 crores, a growth of 7% on a year-onyear basis, with EBITDA at 20.9%, growing 21% on a year-on-year basis. The Operating profit margins went up by 234 bps YoY to 20.92%. Operating profit increased by 21% YoY to Rs 818 crore. After the sharp 66% fall in other income to Rs 52.93 crore, PBIDTA was up by 5% YoY to Rs 871.59 crore, net profit up by 5% YoY to Rs 403.45 crore. The Company...

Cipla Ltd Q3FY18 results comment Revenue decreased by 3.86% to Rs. 3834.49 Cr in Q3FY18 when compared to the previous quarter. On the other hand, it grew by 7.6% when compared with Q3FY17.

Maintain NEUTRAL with a TP of Rs 625 (20x Dec-19E). Ciplas top-line performance was as per estimates in 3QFY18, as the company benefitted from the launch budenoside and decitabine in the US market. The top-line came in at Rs 39.1bn, ~7% up YoY. This was also boosted by a strong performance in the India business (+14% YoY). EBITDA was Rs 8.2bn, up 21% YoY.

ICICI Securities Ltd | Retail Equity Research Revenues grew 7% YoY to | 3914 crore, (I-direct estimate: | 4167 crore) mainly due to 15% growth in the domestic formulations to | 1601 crore (I-direct estimate: | 1677 crore). EBITDA margins improved 234 bps YoY to 20.9%, and came above Idirect estimate of 20.3% mainly due higher gross margins (64.8% vs I-Direct estimates of 64%). EBITDA grew 21% YoY to | 819 crore (Idirect estimate: | 846 crore) PAT grew 7% to | 401 crore (I-direct estimate: | 482 crore) as higher operational performance YoY was largely negated by | 174 crore of...

Total revenues for Q3FY18 were at Rs39.1bn (est. Rs43bn) were up 7.3% YoY and down 4.1% QoQ. Gross margins gained traction and were at 64.8% Vs 62% in Q2FY18. PAT was up 60.4% at Rs4bn much lower than our estimate of Rs4.9bn. Given domestic business has significantly normalized and also traction gaining by...

Valuation Continues to Remain Pricey; Maintain HOLD Cipla's revenue rose by 7.3% YoY to Rs39.1bn in 3QFY18 vs. our estimates of Rs41.6bn. While its US business declined by 1.8% YoY to US$100mn, domestic business grew by 14.5% YoY (+22% YoY adjusted for GST-related accounting). Its South African business grew by 6.1% YoY to Rs8.7bn, while Emerging Market sales dipped by 11.7% YoY to Rs3.7bn. In-line with our estimates, EBITDA rose by 20.8% YoY led by lower operating expenses. Gross margin rose by 281bps QoQ due to better product-mix. EBITDA margin improved by 234bps YoY to 20.9%. We believe Cipla's valuation continues to remain expensive. Rolling over our estimates to FY20E, we maintain...

Cipla posted lower than expected results on all fronts for 2QFY2018. In Rupee terms, revenues came in at `3,988r v/s. `4,243cr expected, up 8.6% yoy. Domestic sales posted a growth of 10.2% yoy; while exports grew by 7.5% yoy. On the operating front, the EBITDA margin came in at 17.8% (19.7% expected) v/s. 16.4% in 2QFY2017; a yoy expans..

Cipla's Q2 EBITDA margin improved 156 bps YoY at 19.7% (despite 270 bps YoY decline in gross margin) led by operating leverage (higher domestic sales) and increasing cost efficiencies (which it expects to improve further in H2FY18/FY19).