Views on Cipla Limited 4QFY2017 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- Pharma, Angel Broking):

Cipla (CMP: INR 504 / TP: INR 465 / Upside: (7.7%))

"For 4QFY2017, the company posted bad set of numbers, a part being related to extra-ordinary items. For the quarter the sales, came in at INR 3487cr V/s INR 3,817cr, registering a YoY growth of 8.7%, aided by robust growth in export markets. Exports (INR 2385cr), posted a YoY growth of 22.4%, while domestic formulation (INR 1197cr), posted a YoY dip of 4.8%. On the OPM front the EBDITA Margins came in at 11.8% V/s 16.8% expected V/s 5.0% in 4QFY2016. The results for the quarter include one-off charges related to impairment of a part of intangibles from its US acquisition and a provision for loss on certain assets of its subsidiary Cipla BioTec Pvt. Ltd (INR 56cr). Also, during the quarter the company posted INR 214cr impairment charges pertaining to intangible assets of US Generics business. Thus the company posted net loss of INR 62cr V/s profit of INR 299cr expected V/s profit of INR 81cr in 4QFY2016. For the financial year, company filled 32 ANDAs, much ahead of its guidance range of 20-25 ANDAs. The R&D expenses during the quarter were 8.8% of sales. We maintain our REDUCE on the stock."

Shares of CIPLA LTD. was last trading in BSE at Rs.504.1 as compared to the previous close of Rs. 520.35. The total number of shares traded during the day was 262355 in over 5145 trades.

The stock hit an intraday high of Rs. 527 and intraday low of 497.4. The net turnover during the day was Rs. 133075099.

Source : Equity Bulls

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