4QFY2016 Result Update | Pharmaceutical
June 10, 2016
Cipla
NEUTRAL
CMP
`469
Performance Highlights
Target Price
-
Y/E March (` cr)
4QFY2016 3QFY2016
% chg qoq 4QFY2015
% chg yoy
Investment Period
-
Net sales
3,207
3,027
5.9
2,981
7.6
Other income
115
159
(27.7)
173
(33.8)
Stock Info
Gross profit
142
1,783
(92.0)
1,822
(92.2)
Operating profit
159
364
(56.3)
396
(59.8)
Sector
Pharmaceutical
Adj. Net profit
81
343
(76.4)
260
(68.9)
Market Cap (` cr)
37,662
Source: Company, Angel Research
Net Debt (` cr)
563
Beta
0.8
Cipla’s results for 4QFY2016 have come much below our expectations. Sales
52 Week High / Low
748/458
came in at `3,207cr V/s `3,274cr expected, a yoy growth of 7.6%. The sales
Avg. Daily Volume
156,993
growth was driven by domestic formulations (`1,258cr), as expected, which grew
15.9% yoy, while exports posted a yoy growth of 7.4%. On the operating front,
Face Value (`)
2
the EBDITA came in at 5.0% V/s 13.3% in 4QFY2015 and against 13.8%
BSE Sensex
27,010
expected. The reported EBDITA margins include a lot of one-offs, adjusting for
Nifty
8,266
which the OPM was at 15.8%. The net profit thus came in at `81cr V/s `399cr
Reuters Code
CIPL.BO
expected and V/s `260cr in 4QFY2015, a yoy de-growth of 68.9%. We remain
Bloomberg Code
[email protected]
Neutral on the stock.
Results much lower than expectations: Sales for the quarter came in at `3,207cr
Shareholding Pattern (%)
V/s `3,274cr expected, a yoy growth of 7.6%. The sales growth was driven by
Promoters
36.8
domestic formulations (`1,258cr), as expected, which grew 15.9% yoy, while
MF / Banks / Indian Fls
19.0
exports posted a yoy growth of 7.4%. Exports of formulations increased 3.2% to
FII / NRIs / OCBs
25.1
`1,744cr during 4QFY2016, while exports of APIs were flat at `204cr during
Indian Public / Others
19.1
4QFY2016. On the operating front, the EBDITA came in at 5.0% V/s 13.3% in
4QFY2015 and against 13.8% expected. The decline was mainly owing to a dip
in gross profit margins, which came in at 55.8% V/s 61.1% in 4QFY2015. The
Abs. (%)
3m 1yr
3yr
reported EBDITA margins include a lot of one-offs, adjusting for which, the OPM
Sensex
9.6
0.9
39.0
was 15.8%. The net profit thus came in at `81cr V/s `399cr expected and V/s
Cipla
(13.0)
(24.8)
25.8
`260cr in 4QFY2015, a yoy dip of 68.9%.
Outlook and valuation: We expect the company to post a 16.3% CAGR in
3-Year Daily Price Chart
net sales to `18,089cr and EPS to record a 20.4% CAGR to `27.2 over
800
700
FY2016-18E. We recommend our neutral stance on the stock owing to the
600
company’s poor return ratios.
500
Key financials (Consolidated)
400
300
Y/E March (` cr)
FY2015
FY2016
FY2017E
FY2018E
200
Net sales
11,681
13,372
15,378
18,089
100
% chg
19.8
14.5
15.0
17.6
0
Adj. Net profit
1,578
1,506
1,736
2,185
% chg
13.6
-4.5
15.3
25.9
EPS (`)
19.6
18.8
21.6
27.2
Source: Company, Angel Research
EBITDA margin (%)
17.7
16.4
17.4
18.4
P/E (x)
23.8
24.9
21.6
17.2
RoE (%)
15.1
13.3
13.7
15.2
RoCE (%)
12.9
10.7
11.1
13.5
P/BV (x)
3.5
3.2
2.8
2.4
Sarabjit Kour Nangra
EV/Sales (x)
3.3
3.1
2.7
2.2
+91 22 3935 7600 Ext: 6806
EV/EBITDA (x)
18.6
18.8
15.3
12.0
[email protected]
Source: Company, Angel Research; Note: CMP as of June 7, 2016
Please refer to important disclosures at the end of this report
1
Cipla | 4QFY2016 Result Update
Exhibit 1: 4QFY2016 ( Consolidated) performance
Y/E March (` cr)
4QFY2016
3QFY2016
% chg QoQ
4QFY2015
% chg yoy FY2016 FY2015
% chg yoy
Net sales
3,207
3,027
5.9
2,981
7.6
13,372
10,882
22.9
Other income
114.6
158.6
(27.7)
173.2
(33.8)
514.7
628.6
(18.1)
Total income
3,321
3,186
4.3
3,154
5.3
13,887
11,511
20.6
Gross profit
142
1783
(92.0)
1822
(92.2)
8254
6728
22.7
Gross margin
4.4
58.9
61.1
61.7
61.8
Operating profit
159
364
(56.3)
396
(59.8)
2195
1699
29.2
OPM (%)
5.0
12.0
13.3
16.4
15.6
Interest
36.8
23.0
60.2
43.4
(15.2)
161
168
(4.0)
Depreciation
141
137
2.9
136
4.2
542
505
7.3
PBT
96
363
(73.6)
390
(75.5)
2007
1654
21.3
Provision for taxation
-4
12
(132.6)
103
(103.8)
440
400
9.9
PAT before extra-ordinary item
99
351
(71.6)
287
(65.3)
1567
1254
25.0
Share of Profit /( loss ) of asso.
(13)
(10)
27
(61)
(73)
Extra-ordinary items/(income)
0
0
0
0
0
PAT after extra-ordinary item
81
343
(76.4)
260
(68.9)
1506
1181
27.5
Adj. PAT
81
343
(76.4)
260
(68.9)
1506
1181
27.5
EPS (`)
1.0
4.3
3.2
18.8
14.7
Source: Company, Angel Research
Exhibit 2: 4QFY2016 - Actual vs. Angel estimates
(` cr)
Actual
Estimates
Variance
Net sales
3,207
3,274
(2.1)
Other income
115
106
8.0
Operating profit
159
451
(64.7)
Tax
(4)
12
-
Net profit
81
399
(79.8)
Source: Company, Angel Research
Top-line growth tad lower than expectation
For 4QFY2016, Cipla posted a yoy growth of 7.6% in sales of `3,207cr (V/s
`3,274cr expected). The sales growth was as expected driven by domestic
formulations (`1,258cr), which posted a yoy growth of 15.9%, while exports posted
a yoy growth of 7.4%. Exports of formulations increased 3.2% to `1,744cr during
4QFY2016, while exports of APIs were flat at `204cr during 4QFY2016.
For FY2016, domestic sales grew 9.0% yoy to `5,184cr (40% of overall sales), with
the branded segment posting a 13.0% yoy growth and accounting for 81% of the
overall domestic formulation sales. In the Indian market, the company is ranked
third, with a market share of 5.3%.
Exports at `8,261cr posted a yoy growth of 36.4%. USA (US$321mn), which was
15% of sales (including the acquisition), posted a yoy growth of 117%. The
company completed the acquisition of InvaGen Pharmaceuticals Inc., while Exelan
Pharmaceuticals Inc’s integration of operations is under way. In terms of filings, the
company has filed 168 ANDAs with around 90 approved and 78 tentatively
approved/pending approval.
June 10, 2016
2
Cipla | 4QFY2016 Result Update
South Africa’s (ZAR3,272mn) contribution at ~11.5% of overall sales in FY2016,
registered a growth of ~25% over last year. The company has a market share of
~5% in the private market and is the 3rd largest generics player in South Africa.
Also, the company posted a 60% yoy growth in tender sales vs last year.
International business’ (US$523mn) posted an overall sales growth of ~14% in
FY2016 over last year and contributed by ~25% to overall sales. It posted a robust
growth of ~25% in front-end markets vs last year, despite a war situation in
Yemen and currency devaluation in several emerging markets. It has a market
leadership in Uganda, Sri Lanka, Yemen, and North Africa. There has been a
resurgence in partnership-led markets (B2B) with 8% yoy growth vs last year.
The Europe business contributed ~4% to overall sales. There was a growth of 30%
in FY2016 sales vs last year, driven by strong performance across B2B and DTM
segments. It launched Fluticasone Salmeterol, Mometasone, Fluticasone,
Ipratropium Salbutamol respules and Ipratropium MDI across multiple markets in
FY2016. The company witnessed new launches in 4QFY2016 for Fluticasone
Salmeterol (Netherlands), Mometasone (Austria, Portugal), Fluticasone (Germany,
Hungary, and Spain), Ipratropium Salbutamol respules (Belgium). It received an
approval for Salmeterol Fluticasone in Italy in 4QFY2016.
Exhibit 3: Sales Trend
3,000
2,500
2,000
1,500
1,000
500
0
4QFY2015
1QFY2016
2QFY2016
3QFY2016
4QFY2016
Domestic
Export
Source: Company
Operating profit margin much lower than expected
On the operating front, the EBDITA came in at 5.0% V/s 13.3% in 4QFY2015 and
against 13.8% expected, mainly owing to a dip in gross profit margins, which
came in at 55.8% V/s 61.1% in 4QFY2015. The reported EBDITA margins include
a lot of one-offs, adjusting for which the OPM was 15.8%.
June 10, 2016
3
Cipla | 4QFY2016 Result Update
Exhibit 4: OPM Trend
30.0
25.0
25.5
20.0
20.8
15.0
13.3
12.0
10.0
5.0
5.0
0.0
4QFY2015
1QFY2016
2QFY2016
3QFY2016
4QFY2016
Source: Company
Net profit lower than expectation
On back of much lower than expected OPM, the net profit came in at `81cr V/s
`399cr expected and V/s `260cr in 4QFY2015, a yoy de-growth of 68.9%. Also,
the other income during the quarter was `115cr V/s `173cr in 4QFY2015, a yoy
dip of 33.8%.
Exhibit 5: Net Profit Trend
800
651
700
600
500
431
400
343
300
260
200
80
100
0
4QFY2015
1QFY2016
2QFY2016
3QFY2016
4QFY2016
Source: Company
Concall takeaways
R&D as % of sales is expected to be ~8% in FY2017, as against ~6.5% in
FY2016.
In USA, the company expects to file 20-25 ANDAs in FY2017.
Impact of DPCO and Fixed Dosage Combinations ban on domestic market
expected to be ~2-3% for FY2017.
June 10, 2016
4
Cipla | 4QFY2016 Result Update
Recommendation rationale
Export segment to be the growth driver: Cipla exports to more than 180 countries,
with growth coming through marketing alliances and distribution tie-ups in various
markets. Exports contributed 60% to the total turnover in FY2016, with Africa, US
and Latin America constituting more than ~60% of total exports. In the US, Cipla
has a strong product pipeline of 168 ANDAs, out of which, 90 are approved.
Another long term growth driver for the company is the launch of the CFC-free
inhalers in the regulated markets. CFC-free inhalers in Europe and US address a
potential market size of more than US$3bn.
During the quarter, the company strengthened its foothold in the US through the
acquisition of InvaGen Pharma and Exelan Pharma. The companies added a
pipeline of ~70 ANDAs, of which 40 are approved (32 marketed) and 30
awaiting approval. The company is likely to add over USD250mn in FY2017. The
deal is expected to conclude by December 2015. It will also provide manufacturing
capabilities in the US. Overall, we expect the company’s exports to grow at a
CAGR of 19.1% during FY2016-18E.
Increasing penetration in the domestic market: Cipla is one of the largest players
in the domestic formulation market, with a market share of around
5.3%.
Domestic formulations contributed 40% to the company’s total turnover in FY2016.
The company is the market leader in key therapeutic areas such as respiratory
care, anti-viral and urological. Cipla’s distribution network in India consists of a
field force of around 7,000-8,000 employees. The company plans to increase its
focus on domestic markets with new therapies such as oncology and neuro-
psychiatry in the offing. The company plans to focus on growing its market share
and sales by increasing penetration in the Indian market, especially in rural areas,
and plans to expand its product portfolio by launching biosimilars, particularly
relating to the oncology, anti-asthmatic and anti-arthritis categories. Overall we
expect the company’s domestic formulation business to post a CAGR of 14.0%
over FY2016-18E.
Valuation: We expect the company to post a 16.3% CAGR in net sales to
`18,089cr and EPS to record a 21.7% CAGR to `27.8 over FY2016-18E. The
growth in the top-line would be driven by domestic formulation sales and exports.
We maintain our Neutral stance on the stock.
Exhibit 6: Key assumptions
Key assumptions
FY2017E
FY2018E
Domestic growth (%)
13.0
15.0
Exports growth (%)
19.1
19.2
Growth in employee expenses (%)
15.0
15.0
Operating margins (excl tech. know-how fees) (%)
17.4
18.4
Source: Company, Angel Research
June 10, 2016
5
Cipla | 4QFY2016 Result Update
Exhibit 7: One-year forward PE band
800
700
600
500
400
300
200
100
-
Price
10x
15x
20x
25x
Source: Company, Angel Research
Exhibit 8: Recommendation Summary
Company
Reco
CMP Tgt. price Upside
FY2017E
FY15-17E
FY2017E
(`)
(`)
% PE (x) EV/Sales (x) EV/EBITDA (x)
CAGR in EPS (%)
RoCE (%) RoE (%)
Alembic Pharma
Neutral
557
-
-
29.8
3.0
18.2
11.4
22.0
20.1
Aurobindo Pharma Accumulate
773
768
10.8
20.1
3.1
14.5
11.4
21.4
27.7
Cadila Healthcare Buy
320
400
25.0
18.7
2.9
13.2
22.9
24.2
28.8
Cipla
Neutral
469
-
-
21.6
2.7
15.3
4.9
11.1
13.7
Dr Reddy's
Accumulate
3,158
3,476
10.1
20.7
3.0
12.3
6.8
19.2
18.7
Dishman Pharma Neutral
152
-
-
15.2
1.6
7.7
15.9
9.4
11.0
GSK Pharma
Neutral
3,515
-
-
58.4
8.1
43.0
0.0
33.0
29.9
Indoco Remedies
Neutral
282
-
-
20.7
2.2
12.4
23.0
19.7
19.7
Ipca labs
Buy
431
750
74.0
15.4
1.6
8.8
17.9
11.8
14.9
Lupin
Buy
1,435
1,809
26.1
24.7
4.1
15.6
13.1
29.6
24.7
Sanofi India*
Accumulate
4,300
4,738
10.2
28.0
3.9
22.3
34.2
21.0
25.6
Sun Pharma
Buy
739
950
28.6
26.4
5.4
17.9
10.5
17.7
18.7
Source: Company, Angel Research; Note: * December year ending
June 10, 2016
6
Cipla | 4QFY2016 Result Update
Company Background
Cipla is a leading pharmaceutical company in India with a strong presence in
both, the export and domestic markets. On the exports front, where it follows the
partnership model, it has 5,700 product registrations in around 180 countries.
Cipla is a market leader in the domestic formulation market with ~5.3% market
share. The company is likely to continue on the growth trajectory owing to its entry
into the inhalers market in the EU and potential new long-term manufacturing
contracts with Global Innovators.
June 10, 2016
7
Cipla | 4QFY2016 Result Update
Profit & loss statement (Consolidated)
Y/E March (` cr)
FY2013
FY2014
FY2015
FY2016
FY2017E
FY2018E
Gross sales
8,196
9,902
11,861
13,587
15,615
18,368
Less: Excise duty
108.7
149.3
179.7
215.0
236.6
278.3
Net sales
8,087
9,753
11,681
13,372
15,378
18,089
Other operating income
193
348
348
306
306
306
Total operating income
8,279
10,100
12,029
13,678
15,684
18,395
% chg
17.9
22.0
19.1
13.7
14.7
17.3
Total expenditure
6,081
7,967
9,612
11,177
12,704
14,760
Net raw materials
2,953
3,875
4,556
5,118
5,736
6,747
Other mfg costs
641
827
993
1,142
1,313
1,510
Personnel
1,036
1,543
2,083
2,447
2,814
3,236
Other
1,451
1,722
1,981
2,470
2,841
3,267
EBITDA
2,005
1,786
2,069
2,195
2,675
3,329
% chg
35.0
(11.0)
15.9
6.1
21.8
24.5
(% of Net Sales)
24.8
18.3
17.7
16.4
17.4
18.4
Depreciation & amort.
330
373
457
542
676
732
EBIT
1,675
1,413
1,613
1,654
1,999
2,597
% chg
42.7
(15.6)
14.1
2.5
20.9
30.0
(% of Net Sales)
20.7
14.5
13.8
12.4
13.0
14.4
Interest & other charges
34
146
85
161
161
161
Other Income
235
266
266
209
209
209
(% of PBT)
11.4
14.1
12.4
10.4
8.9
7.1
Recurring PBT
2,069
1,881
2,141
2,007
2,352
2,951
% chg
39.3
(9.1)
13.8
(6.3)
17.2
25.5
Extraordinary exp./(Inc.)
(26.7)
-
-
-
-
-
PBT (reported)
2,095
1,881
2,141
2,007
2,352
2,951
Tax
544.3
463.4
535.3
439.6
588.0
737.7
(% of PBT)
26.0
24.6
25.0
21.9
25.0
25.0
PAT (reported)
1,551
1,417
1,606
1,567
1,764
2,213
Add: Share of earnings of asso.
(6)
(12)
(12)
(12)
(11)
(10)
Less: Minority interest (MI)
-
16
16
49
17
18
Prior period items
-
-
-
-
-
-
PAT after MI (reported)
1,545
1,388
1,578
1,506
1,736
2,185
ADJ. PAT
1,524
1,388
1,578
1,506
1,736
2,185
% chg
30.0
(8.9)
13.6
(4.5)
15.3
25.9
(% of Net Sales)
19.1
14.2
13.5
11.3
11.3
12.1
Basic EPS (`)
19.0
17.3
19.6
18.8
21.6
27.2
Fully Diluted EPS (`)
19.0
17.3
19.6
18.8
21.6
27.2
% chg
30.0
(8.9)
13.6
(4.5)
15.3
25.9
June 10, 2016
8
Cipla | 4QFY2016 Result Update
Balance sheet (Consolidated)
Y/E March (` cr)
FY2013
FY2014
FY2015
FY2016
FY2017E
FY2018E
SOURCES OF FUNDS
Equity share capital
161
161
161
161
161
161
Preference Capital
-
-
-
-
-
-
Reserves & surplus
8,858
9,890
10,629
11,697
13,245
15,241
Shareholders funds
9,019
10,050
10,801
11,857
13,405
15,402
Minority interest
-
50
180
270
270
270
Total loans
966.9
1,247.9
1,701.8
5,191.4
4,000.0
4,000.0
Other long term liabilities
30.0
32.6
32.6
32.6
32.6
32.6
Long Term Provisions
50.4
77.4
168.4
154.9
154.9
154.9
Deferred tax liability
280.5
309.0
284.6
366.4
366.4
366.4
Total liabilities
10,347
11,767
13,169
17,872
18,229
20,226
APPLICATION OF FUNDS
Gross block
5,318
6,183
6,868
8,100
8,800
9,500
Less: acc. depreciation
1,708
2,180
2,634
3,176
3,852
4,584
Net block
3,610
4,003
4,234
4,924
4,948
4,916
Capital work-in-progress
378
442
442
442
442
442
Goodwill
-
2,493
2,735
5,713
5,713
5,713
Investments
2,532
709
640
757
757
757
Long Term Loans and Adv.
363
301
419
715
475
559
Current assets
4,775
5,340
7,201
8,262
8,508
10,914
Cash
143
175
564
871
358
1,327
Loans & advances
573
596
701
958
923
1,085
Others
4,058
4,569
5,936
6,432
7,228
8,502
Current liabilities
1,311
1,634
2,501
2,939
2,614
3,075
Net current assets
3,464
3,706
4,700
5,322
5,894
7,839
Mis. Exp. not written off
-
112
-
-
-
-
Total assets
10,347
11,767
13,169
17,872
18,229
20,226
June 10, 2016
9
Cipla | 4QFY2016 Result Update
Cash flow statement (Consolidated)
Y/E March (` cr)
FY2013
FY2014
FY2015
FY2016
FY2017E FY2018E
Profit before tax
2,095
1,881
2,141
2,007
2,352
2,951
Depreciation
330
373
457
542
676
732
(Inc)/Dec in Working Capital
(667)
(149)
(722)
(611)
(846)
(1,060)
Direct taxes paid
518
431
537
632
-
-
Cash Flow from Operations
1,241
1,673
1,339
1,306
2,182
2,623
(Inc.)/Dec.in Fixed Assets
(698)
(930)
(684)
(1,232)
(700)
(700)
(Inc.)/Dec. in Investments
(1,263)
1,824
69
(117)
-
-
Other income
-
-
-
-
-
-
Cash Flow from Investing
(1,961)
894
(616)
(1,349)
(700)
(700)
Issue of Equity
-
-
-
-
-
-
Inc./(Dec.) in loans
957
311
545
3,476
(1,191)
-
Dividend Paid (Incl. Tax)
(188)
(188)
(188)
(188)
(188)
(188)
Others
4
(2,658)
(692)
(2,938)
410
(766)
Cash Flow from Financing
773
(2,535)
(335)
350
(969)
(954)
Inc./(Dec.) in Cash
53
32
389
307
513
969
Opening Cash balances
90
143
175
564
871
358
Closing Cash balances
143
175
564
871
358
1,327
June 10, 2016
10
Cipla | 4QFY2016 Result Update
Key Ratio
Y/E March
FY2013
FY2014
FY2015
FY2016
FY2017E
FY2018E
Valuation Ratio (x)
P/E (on FDEPS)
24.6
27.0
23.8
24.9
21.6
17.2
P/CEPS
20.0
21.3
18.5
18.3
15.6
12.9
P/BV
4.2
3.7
3.5
3.2
2.8
2.4
Dividend yield (%)
0.4
0.4
0.4
0.4
0.4
0.4
EV/Sales
4.7
3.9
3.3
3.1
2.7
2.2
EV/EBITDA
19.0
21.5
18.6
18.8
15.3
12.0
EV / Total Assets
3.7
3.3
2.9
2.3
2.2
2.0
Per Share Data (`)
EPS (Basic)
19.0
17.3
19.6
18.8
21.6
27.2
EPS (fully diluted)
19.0
17.3
19.6
18.8
21.6
27.2
Cash EPS
23.4
21.9
25.3
25.5
30.0
36.3
DPS
2.0
2.0
2.0
2.0
2.0
2.0
Book Value
112.3
125.2
134.5
147.7
166.9
191.8
Dupont Analysis
EBIT margin
20.7
14.5
13.8
12.4
13.0
14.4
Tax retention ratio
74.0
75.4
75.0
78.1
75.0
75.0
Asset turnover (x)
0.9
0.9
1.0
0.9
0.9
1.0
ROIC (Post-tax)
14.0
10.1
10.3
8.9
8.8
10.8
Cost of Debt (Post Tax)
5.0
9.9
4.3
3.7
2.6
3.0
Leverage (x)
0.0
0.1
0.0
0.0
1.0
2.0
Operating ROE
14.4
10.1
10.3
8.9
14.9
26.3
Returns (%)
ROCE (Pre-tax)
18.3
12.8
12.9
10.7
11.1
13.5
Angel ROIC (Pre-tax)
19.3
15.3
17.8
16.3
17.7
21.2
ROE
18.3
14.6
15.1
13.3
13.7
15.2
Turnover ratios (x)
Asset Turnover (Gross Block)
1.7
1.8
1.8
1.8
1.9
2.0
Inventory / Sales (days)
93
95
96
101
87
95
Receivables (days)
71
60
74
58
67
73
Payables (days)
46
41
55
74
43
44
WC cycle (ex-cash) (days)
131
124
116
115
116
120
Solvency ratios (x)
Net debt to equity
0.1
0.1
0.1
0.4
0.3
0.2
Net debt to EBITDA
0.4
0.6
0.5
2.0
1.4
0.8
Interest Coverage (EBIT/Int.)
-
-
-
-
-
-
June 10, 2016
11
Cipla | 4QFY2016 Result Update
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and MCX Stock Exchange Limited. It is also registered as a Depository Participant with CDSL and
Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a
registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates including its relatives/analyst do not hold any financial interest/beneficial
ownership of more than 1% in the company covered by Analyst. Angel or its associates/analyst has not received any compensation /
managed or co-managed public offering of securities of the company covered by Analyst during the past twelve months. Angel/analyst
has not served as an officer, director or employee of company covered by Analyst and has not been engaged in market making activity
of the company covered by Analyst.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
Note: Please refer to the important ‘Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the
latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may
have investment positions in the stocks recommended in this report.
Disclosure of Interest Statement
Cipla
1. Analyst ownership of the stock
No
2. Angel and its Group companies ownership of the stock
No
3. Angel and its Group companies' Directors ownership of the stock
No
4. Broking relationship with company covered
No
Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors
Ratings (Based on expected returns
Buy (> 15%)
Accumulate (5% to 15%)
Neutral (-5 to 5%)
over 12 months investment period):
Reduce (-5% to -15%)
Sell (< -15)
June 10, 2016
12