My Application Form Status

Check the status of your application form with Angel Broking.
  • Companies
  • Everything else
Search

Cipla Ltd Research Report - 16th Aug 2016

Pharmaceutical | Published on Aug 16th 2016

IT

Cipla posted lower than expected numbers for 1QFY2017. Sales came in at Rs3,500cr V/s Rs3,743cr expected and V/s Rs3,761cr in 1QFY2016, a dip of 6.9% yoy. Domestic sales (Rs1,449cr) rose 5% yoy, while exports (Rs2,051cr) dipped by 14.0% yoy. On the operating front, the EBITDA margin came in at 14.8% V/s 18.6% expected, V/s 26.0% in 1QFY2016, and V/s Adj. OPM of 15.8% in 4QFY2016. Thus, the Adj. net profit came in at Rs365cr V/s Rs435cr expected and V/s Rs649cr in 1QFY2016, a yoy de-growth of 43.7%. We maintain our Neutral rating on the stock. Results much lower than our expectations: The company posted lower than expected numbers for 1QFY2017. Sales came in at Rs3,500cr V/s Rs3,743cr expected and V/s Rs3,761cr in 1QFY2016, a dip of 6.9% yoy. Domestic sales (Rs1,449cr) rose 5% yoy, while exports (Rs2,051cr) dipped by 14.0% yoy. On the operating front, the EBITDA margin came in at 14.8% V/s 18.6% expected, V/s 26.0% in 1QFY2016, and V/s Adj. OPM of 15.8% in 4QFY2016. Thus, the Adj. net profit came in at Rs365cr V/s Rs435cr expected and V/s Rs649cr in 1QFY2016, a yoy de-growth of 43.7%. Outlook and valuation: We expect the company to post a 16.3% CAGR in net sales to Rs18,089cr and EPS to record a 20.4% CAGR to Rs27.2 over FY2016–18E. We reiterate our Neutral stance on the stock owing to the company’s poor return ratios.

Download Full Report

Accumulate

CMP 517
Target Price
Investment Period12 Months

Stock Info

MCAP BSE (Rs in Cr)45,955.82
MCAP NSE (Rs in Cr)45,939.73
P/E (x)48.91
EPS (Rs.)11.68
BV (Rs.)153.11
Div Yield (%)0.35
FV (Rs.)2.00
P/BV (x)3.74
EV/Sales (x)3.69
EV/EBITDA (x)19.67

Shareholding Pattern (%)

Promoter37.0
Foreign26.0
Public & Others17.0
Institution16.0
Corporate4.0
Grand Total100.0

Trade Securely

AngelEye

Portfolio Tracking & Trading Application View Demo