Hold Cipla for target of Rs 252: KR Choksey

MUMBAI: In its results update on pharmaceutical major Cipla, brokerage KR Choksey has advised investors to Hold the stock for a price target of Rs 252.

According to the report, the company���s topline and bottomline were in line with its expectations and the brokerage believes that Cipla would post good growth numbers in the coming quarters.

���We believe the sales of the company were mainly driven by good performance from its domestic as well as exports business. The company reported forex losses for the quarter of Rs10 crore which did not have much impact at its operating level as there was significant decline in the raw material cost. The net profit of the company was impacted by an increase in interest cost (an increase of 49%).

Going forward, we believe that Cipla would post good growth numbers in the coming quarters as we see a good revenue visibility from Medpro in south Africa which currently contributes around 7% to total revenue, which we expect to increase in coming times. We also expect the margin of Cipla at the operating level would remain in the level of 25-26%. The company has recently won the case for Erlotinib against Roche, the positive effect of which would be reflected in its financials going forward,��� the report said.