Ramp up in US sales and robust India business to drive growth ahead
Cipla is a leading global pharmaceutical company with 1,500 plus products across various therapeutic categories. It has presence in over 80 countries.
Outlook and Valuation: We believe key product approvals in the US along with the company’s target to launch a niche product every quarter over the next two years will give a strong boost to the US business going ahead. Moreover, steady India business and strong grwoth in SAGA business & RoW markets will drive revenue growth further. Hence, we expect revenue/Adj. PAT CAGR of 13%/39% over FY17-20E. Hence, we recommend ‘BUY’ rating on the stock with a target price (TP) of Rs 677 based on 20.3x FY20E EPS.
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Hello!
Wondering… is a 10% price appreciation in CIPLA over long term worth the risk? (Of course depends on your definition of long term but I assume its atleast 2-3 yrs.)
This point considering that, in comparison, one can get 8-9% annually very safely from debt and may be 15% from MFs on annual basis?)
Meantime, can we have your review of Biocon and Piramal Healthcare , please? Thanks!
Dear Investor,
The pharma sector was week for past 3 years but now we expect the valuation and the price has bottomed out. You can invest in Cipla at current market price for long term. We will revise our target price if the stock declares good quarterly results. We will update you on Biocon and Piramal Healthcare once we generate the research report. Thank You.
Hello!
Wondering… is a 10% price appreciation in CIPLA over long term worth the risk? (Of course depends on your definition of long term but I assume its atleast 2-3 yrs.)
This point considering that, in comparison, one can get 8-9% annually very safely from debt and may be 15% from MFs on annual basis?)
Meantime, can we have your review of Biocon and Piramal Healthcare , please? Thanks!
Dear Investor,
The pharma sector was week for past 3 years but now we expect the valuation and the price has bottomed out. You can invest in Cipla at current market price for long term. We will revise our target price if the stock declares good quarterly results. We will update you on Biocon and Piramal Healthcare once we generate the research report. Thank You.
Yes, Biocon and Piramal Healthcare are stocks that certainly interest me. I look forward to your analysis and evaluation. Thank you!
Sincerely,
Bharat
Yes, Biocon and Piramal Healthcare are stocks that certainly interest me. I look forward to your analysis and evaluation. Thank you!
Sincerely,
Bharat