CIMB retains ‘outperform’ on Cipla

Factoring in the recently acquired Medpro,CIMB has upgradeed its FY15-16 EPS by 5%,resulting in a corresponding rise in our target price(21x FY15 P/E, 5% premium over large-cap pharme sector) to Rs 500.


It believes Medpro’s front-end capabilities and leadership in the South African tender market (25% share) will strengthen Cipla’s presence in key markets in Africa.

The recovery of its India business due to strong growth in respiratory and anti-infectives is positive. The Medpro acquisition is a near-term

Target: Rs 500 Current price: Rs 405.75