ICICI Securities maintains 'hold' on Cipla
ICICI Securities has reiterated its ‘hold’ rating on Cipla, even as the company faces the risk of missing its 2008-09 revenue and profit guidance due to lower-than-expected earnings performance in the first half of the fiscal.
By ET Bureau |
CMP: Rs 192.70
Target price: NA
ICICI Securities has reiterated its ���hold��� rating on Cipla, even as the company faces the risk of missing its 2008-09 revenue and profit guidance due to lower-than-expected earnings performance in the first half of the fiscal.
���Cipla appears to be in no position to achieve its FY09 guidance of 12-15% Y-o-Y (year-on-year) sales and PAT (profit after tax) growth each,��� the brokerage said in a report. ���We remain concerned on account of increasing risk to Cipla���s partnership model given the global consolidation, increased competition, declining margin and reclusive management, implying lack of visibility on strategy and medium-term growth outlook,��� it added.
Target price: NA
ICICI Securities has reiterated its ���hold��� rating on Cipla, even as the company faces the risk of missing its 2008-09 revenue and profit guidance due to lower-than-expected earnings performance in the first half of the fiscal.
���Cipla appears to be in no position to achieve its FY09 guidance of 12-15% Y-o-Y (year-on-year) sales and PAT (profit after tax) growth each,��� the brokerage said in a report. ���We remain concerned on account of increasing risk to Cipla���s partnership model given the global consolidation, increased competition, declining margin and reclusive management, implying lack of visibility on strategy and medium-term growth outlook,��� it added.
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