Buy Cipla; target of Rs 975: ICICI Direct

ICICI Direct is bullish on Cipla has recommended buy rating on the stock with a target price of Rs 975 in its research report dated January 30, 2021.

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February 04, 2021 / 05:23 PM IST
 
 
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ICICI Direct's research report on Cipla


Q3 revenues grew 18.2% YoY to rS 5169 crore led by strong growth in domestic and RoW markets. Domestic sales grew 25.5% YoY to rS 2231 crore. RoW markets business grew 47.2% YoY to rS 823 whereas South Africa business fell 2.5% YoY to rS 579 crore. US grew 9.6% YoY to rS 1037 crore. EBITDA margins expanded 647 bps YoY to 23.8% mainly due to significantly lower other expenditure. Hence, EBITDA grew 62.3% YoY to rS 1231 crore. PAT more than doubled to rS 748 crore vs. rS 351 crore in Q3FY20


Outlook


We maintain BUY with a target price of rS 975 (vs. earlier rS 965) including base business value of rS 935 (25x FY23E EPS rS 37.4 + rS 42 NPV for gRevlimid.


For all recommendations report, click here


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TAGS: #Buy #Cipla #ICICI Direct #Recommendations
first published: Feb 4, 2021 05:23 pm