Cipla Ltd. share price target

Total revenues for Q1FY18 were at Rs35.2bn (est. Rs39.6bn) were down 3.4% YoY and 1.6% QoQ. Gross margins remained strong at 66.6% for Q1FY18 Vs 62.5% for Q1FY17 and 63.3% in Q4FY17, given one-time benefit of ~150bps. PAT was up 20.6% at Rs4.1bn, Adj PAT was down 14.2%YoY and 11.9% QoQ adjusting for...

Cipla's total income remained flat q-o-q but decreased 3.4% y-o-y to Rs 35,251 mn in 1Q FY18 falling short of our expectation. Cipla's domestic business recorded 12% y-o-y decline during the quarter mainly due to destocking in lieu of implementation of GST. EBITDA increased 27.7% q-o-q and 5.8% y-o-y to Rs 6,465 mn in 1Q FY18. EBITDA margin increased 421 bps q-o-q and 159 bps y-o-y to 18.3% in-line...

CIPLA continues to trade at expensive valuations (29.9x FY18E and 23x FY19E at CMP). Considering the valuation and the ongoing business re-shaping, we maintain a NEUTRAL rating with a TP of Rs 490 (20x on Jun19E). Being a company strongly focussed on the domestic-market and thus facing GST headwinds, CIPLA put forth a relatively good performance in 1QFY18. While domestic revenues did decline (13.4% YoY), the EBITDA margin came in strong at 18.3% (~200bps above estimates). This was largely on account of improved gross margin of ~400bps YoY. The overall top-line declined 3%YoY to Rs 35.2bn vs expectations of 1% growth. PAT was Rs 4.25bn, up 55% YoY. This was largely owing to a one-time income of Rs 1.2bn, from gain on sale of investments in two South African subsidiaries.

For 4QFY2017, Cipla posted poor set of numbers primarily related to extra-ordinary items. For the quarter, the sales came in at `3487cr v/s. `3,253cr in 4QFY2016, registering a yoy growth of 7.2%, aided by robust growth in export markets. On the OPM front, the EBDITA margins came in at 11.8% (v/s. 16.8% expected) v/s 5.0% in 4QFY2016. Thu..

Cipla's Q4FY17 results were disappointing on the back of depressing EBITDA margins. Total revenues were up 8.1% YoY at Rs35.8 bn below estimates by 5.5%, EBITDA margins were at 14.1% vs our estimation of 17.8% due to higher R&D; and certain one off charges and forex. Adj. PAT was at Rs3.3 bn vs our estimation of Rs3.1 bn mainly on the back of the one-time USD32 mn impairment charges on intangibles in Invagen and one-time provisioning of...

Revenue fell by 2.15% to Rs. 3487.04 Cr in Q4FY17 when compared to the previous quarter.

CIPLAs performance in 4QFY17 was disappointing, with revenues growing 8% YoY to Rs 3.6bn (~4% below expectations), lower EBITDA margin of 14.1% (sequential decline of ~450bps) and net loss of Rs 0.6bn.

ICICI Securities Ltd | Retail Equity Research Revenues grew 8% YoY to | 3582 crore, (I-direct estimate: | 3670 crore) mainly due to growth in US and South Africa. US sales grew 33% to | 646 crore (I-direct estimate: | 625 crore) due to consolidation of InvaGen. Domestic formulations fell 4% to | 1197 crore (I-direct estimate: | 1346 crore) owing to changed distribution policy and supply side disruptions due to demonetisation EBITDA margins improved 882 bps YoY to 14.1% but below I-direct...

Cipla posted numbers lower than expected for 3QFY2017. The company reported sales of Rs3,550cr v/s Rs3,737cr expected, registering a yoy growth of 15.6%, mainly aided by domestic formulations. Domestic at Rs1,408cr registered a yoy growth of 19.1%, while exports at Rs2,239cr posted yoy growth of 13.7%. On operating front, the EBITDA margi..

Revenue decreased by 3.32% to Rs. 3550.02 Cr in Q3FY17 when compared to the previous quarter. On the other hand, it rose by 15.64% when compared with Q3FY16.