Views on Cipla Ltd 1QFY2018 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking):

"Cipla posted poor set of numbers, sales came in at INR 3,432cr V/s INR 3,789cr expected V/s INR 3,500cr in 1QFY2017, a YoY de-growth of 1.9%, mainly driven by the Indian formulation sales dip. Indian formulation sales (INR 1,271cr), a YoY dip of 12.3% mainly on back of GST implementation. Its other market USA (US$100mn), posted 2.0% YoY growth. South Africa (ZAR 998mn), posted a 10.0% YoY growth. On operating front, the EBITDA margins came in at 16.1% V/s 15.5% expected V/s 14.8% in 1QFY2017, mainly on back of lower than expected sales during the quarter and an 11.2% rise in the other expenses. Gross margins came in at 65.7% V/s 60.8% in 1QFY2017. Thus, the PAT came in at INR 425cr V/s INR 346cr expected V/s INR 370cr in 1QFY2017, a YoY growth of 14.9%. We maintain our SELL rating on the stock, with a price target of INR 461."

Shares of CIPLA LTD. was last trading in BSE at Rs.570 as compared to the previous close of Rs. 542.7. The total number of shares traded during the day was 358843 in over 10322 trades.

The stock hit an intraday high of Rs. 575.4 and intraday low of 552. The net turnover during the day was Rs. 203872957.

Source : Equity Bulls

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