Cipla Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Revenues grew 16% YoY to | 3647 crore, (I-direct estimate: | 3903 crore) mainly due to strong growth in the US and India. US sales grew 23% YoY to | 657 crore (I-direct estimate: | 697 crore)....

EBITDA margin were up 389bps at 18.6% in Q3FY17. Comparing QoQ, EBITDA margins were flat and we believe an improvement is attributable to the better product and geography mix. PAT was down 4.1% YoY at Rs2.5 bn after adjusting for Rs1,250 mn towards the consideration...

Cipla posted numbers lower than expected for 2QFY2017. The company posted sales of Rs3,672cr vs. Rs3,737cr expected, registering a yoy growth of 8.7%, mainly aided by domestic formulations. Domestic formulation (Rs1,522cr) grew by 11.3% yoy, while exports (Rs2150cr) grew by 7.5% yoy. On the operating front, the EBITDA margin came in at 16..

ICICI Securities Ltd | Retail Equity Research Revenues grew 9% YoY to | 3751 crore, (I-direct estimate: | 3602 crore) due to strong growth in US and India. US sales grew 38% YoY to | 660 crore (I-direct estimate: | 639 crore). Domestic formulation grew 21% YoY to | 1467 crore (I-direct estimate: | 1338 crore) EBITDA margins declined 460 bps to 18.1% (I-direct estimate: 17.3%) mainly on account of higher other expenditure. EBITDA de-grew 13% YoY to | 681 crore (I-direct estimate: | 625 crore)...

Cipla has reported better-than-expected performance in 2QFY17, with its Sales, EBITDA & PAT stood at Rs37.5bn, Rs6.8bn & Rs3.5bn, respectively. Its Domestic Formulations business (40% of sales) grew by strong 21% yoy to Rs15.2bn led by 16% yoy & 45% yoy growth in branded and generic segments, respectively. Despite higher R&D; spend (8% of sales in 2QFY17 vs. 6.6% in 1QFY17), its EBITDA has topped our estimates owing to strong growth in high margin India business, 200bps qoq growth in gross margin and lower other expenses (up just ~5% ex-Invagen & gNexium). Few negatives are: (1) 10% qoq decline in Invagen sales (US$ 50mn); (2) 4% yoy decline in EM sales; and (3)...

EBITDA margin declined from 22.9% in Q2FY16 to 18.1% in current quarter mainly due to esomeprazole in the previous quarter which helped to gain strong margin. Comparing QoQ, EBITDA margins were at 17% and we believe an improvement is attributable to the better product and geography mix. PAT was down 18.3% YoY at Rs3.5 bn. R&D; focus to continue and specialize on the acquired rights of a high value product with limited...

ICICI Securities Ltd | Retail Equity Research Revenues de-grew 6.4% YoY to | 3593.7 crore, (I-direct estimate: | 3661.7 crore) on account of the high base of gNexium sales. US...

Key highlights: Revenues grew 10% yoy at Rs35.94bn despite the integration of Invagen and that was 9% below our estimates. The miss in revenues was primarily due to no visible growth in Invagen portfolio, muted domestic as well as South African business. The margin performance at 17% (6.7% in Q4FY16) was almost in line of our expectations of 16.2% but the EBITDA missed our estimate by 4% due to lower sales.Thanks to lower tax incidence of 16% (vs 23% normal) that helped it report PAT of Rs 3.65bn (4% below estimated Rs 3.52bn). At a normalised tax rate, the profit performance was 7% below estimate. Phillip Capital retain their Neutral rating with lowered TP of Rs485.

Cipla's Sales, EBITDA & PAT stood at Rs36.9bn, Rs7.1bn & Rs4.6bn, respectively in 1QFY17. It reported lower growth on all fronts on account of high base effect (Nexium contribution at ~US$75mn) in 1QFY16. Domestic formulations business (40% of sales) declined 4% yoy to Rs14.5bn due to NLEM and ban on Fixed Dose Combinations. Negligible contribution from Nexium impacted growth in export formulations (-7% yoy), which is partially offset by full quarter consolidation of Invagen business (contribution US$55mn). EBITDA margins declined 785bps to 19.1% yoy due to Nexium contribution in 1QFY16, higher R&D; cost (6.6% of sales vs. 4.4% of sales in 1QFY16) and employee...

Focus on high-yielding assets more than ever We arranged a board room meeting with Mr. Subhanu Saxena (Global CEO and Managing Director, Cipla Ltd) and more than 20 senior investors. Mr. Subhanu...