Views on Cipla Ltd 4QFY2016 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- Pharma , Angel Broking) on Cipla Ltd 4QFY2016 Results:

Cipla (CMP: INR 495 / TP: / Upside:)

"The company posted results much below expectations. For 4QFY2016, Cipla posted sales of INR 3207cr V/s INR 3274cr expected a YoY growth of 7.6%.The sales growth, was as expected driven by the domestic formulations (INR 1258cr), which posted a YoY growth of 15.9%, while the exports are expected to post a YoY growth of 7.4%. Exports of formulations increased 3.2% to INR 1,744cr during 4QFY2016, while exports of APIs flat at INR 204cr during 4QFY2016. On operating front, the EBDITA came in at 5.0% V/s 13.3% in 4QFY2015 and against the 13.8% expected, mainly driven by the 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%. The net profit thus came in at INR 81cr V/s INR 399cr expected and V/s INR 260cr in 4QFY2015, a YoY de-growth of 68.9%. We would review our rating on the stock."

Shares of CIPLA LTD. was last trading in BSE at Rs.469.25 as compared to the previous close of Rs. 465.35. The total number of shares traded during the day was 204095 in over 4344 trades.

The stock hit an intraday high of Rs. 470.45 and intraday low of 459.5. The net turnover during the day was Rs. 95088720.

Source : Equity Bulls

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