Indiabulls maintains 'buy' on Cipla
Indiabulls has maintained a ‘buy’ rating on Cipla after its third quarter top line increased due to a sharp rise in formulation exports and a consistent performance in the domestic market.
By ET Bureau |
CMP: Rs 191.15
Target price: Rs 223
Indiabulls has maintained a ���buy��� rating on Cipla after its third quarter top line increased due to a sharp rise in formulation exports and a consistent performance in the domestic market. ���Cipla beat our expectations for Q309 as the top line swelled 21.5% y-o-y to Rs 1,340 crore,��� the report says.
The brokerage also expects Cipla to maintain its market share without compromising on margins. ���The company���s exports are increasingly getting skewed towards higher-value higher-margin formulations over bulk drugs,��� it explains. According to the report, Cipla���s anti-asthma segment, which constitutes 25% of its revenues, is likely to get a boost as consumers shift from CFC inhalers to non-CFC inhalers in accordance with the Montreal Protocol���s deadline for banning the use of CFC inhalers by 2010. The report also highlights that fact that Cipla boasts of low leverage levels and absence of FCCBs, unlike peers such as Ranbaxy and Glenmark.
Target price: Rs 223
Indiabulls has maintained a ���buy��� rating on Cipla after its third quarter top line increased due to a sharp rise in formulation exports and a consistent performance in the domestic market. ���Cipla beat our expectations for Q309 as the top line swelled 21.5% y-o-y to Rs 1,340 crore,��� the report says.
The brokerage also expects Cipla to maintain its market share without compromising on margins. ���The company���s exports are increasingly getting skewed towards higher-value higher-margin formulations over bulk drugs,��� it explains. According to the report, Cipla���s anti-asthma segment, which constitutes 25% of its revenues, is likely to get a boost as consumers shift from CFC inhalers to non-CFC inhalers in accordance with the Montreal Protocol���s deadline for banning the use of CFC inhalers by 2010. The report also highlights that fact that Cipla boasts of low leverage levels and absence of FCCBs, unlike peers such as Ranbaxy and Glenmark.
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