Views on Cipla - 2QFY2016 Results - Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking) on Cipla-2QFY2016 Results:

Cipla (CMP: Rs. 659 / TP: /Upside :)

"Cipla for 2QFY2016 posted more or less in line numbers on sales and net profit front while beating our estimates on OPM front, where the company has posted a better than expected numbers. On sales the company, posted sales of INR 3362c V/s INR 3343cr expected and INR 2630cr, YoY growth of 27.8%. The growth on the topline came through a 52.3% YoY growth in exports driven by formulation exports (on back of generic nexium). Export API, on the other hand posted a 61.4% YoY growth during the quarter. Domestic formulation (INR 1262cr) posted a flat growth of 0.9% YoY.

On the operating front, the gross margins came in at 63.8% v/s 61.4% in 2QFY2015, leading the margin expansion. OPMs' came in at 20.8% V/s 16.0% in 2QFY2015 and expected 19.7%, driven by gross margin expansion and higher sales growth. However, inspite of a 66.0% rise in operating profit, the PAT rose only by 44.5% yoy, on back of an 80.0% yoy rise in tax expenses. Thus, the Net Profit came in at INR 432cr V/s INR 458cr expected and INR 299cr in 2QFY2015, a YoY 44.5%. We currently have a NEUTRAL rating on the stock."

Shares of CIPLA LTD. was last trading in BSE at Rs.658.5 as compared to the previous close of Rs. 670.9. The total number of shares traded during the day was 289245 in over 5827 trades.

The stock hit an intraday high of Rs. 675 and intraday low of 655. The net turnover during the day was Rs. 192887154.

Source : Equity Bulls

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