About the Company:
Cipla is one of the leading global pharmaceutical company, headquartered in Mumbai, India. The company uses the latest technology for high quality & affordable medicines to serve their patients. Cipla is the only drug store that introduced the world’s first 3-in-1 fixed-dose combination (Stavudine, Lamivudine, and Nevirapine) to cure HIV disease.
QoQ & YoY Performance:
India’s leading global pharmaceutical Company has declared the results for the second quarter of the fiscal year ending March 2020.
- QoQ Performance: Consolidated Net sales/ revenue of the company recorded to Rs. 4,395.78 crores, increased by 10.20% in the September quarter of FY20. Total expenditure (excluding interest and depreciation expenses) are Rs. 3,486.28 crores, increased by 13.03%. EBITDA numbers marginally up by 2.75%.
- YoY Performance: The Company has reported 9.57% surged in sales/revenue and expenditure (excluding interest and depreciation expenses) of the company increased by 5.34%. EBITDA numbers climbed by 20.99%.
- Profitability of the company: Net profits of the company landed to Rs. 474.50 crores, increased by 6.12% QoQ and plunged by 29.32% YoY.
- Loan Repayment: During the quarter, the company has made US$110mn of loan payment.
As per Lokesh Sethia, SEBI Registered Research Analyst, the stock is trading at Rs. 471.55 per share, the company has posted healthy quarterly result followed by business in South Africa delivers growth of 13% on a year-on-year basis in local currency and US business delivers $135 million to grow at 25%. However, in the domestic market, the company has made a strong recovery in the generics business by 61% and therapies in the branded business grew by 13%. Hence, we recommend it to “BUY” for the target will be Rs. 565.28 per share for Long-Term view.