Cipla Share price II Maintain BUY with Rs 1020 target says HDFC Securities
Cipla delivered yet another solid quarter, driven by healthy growth across businesses (India, CGA, Europe, API). EBITDA margin came ahead of expectation at 24% (+647bps YoY, +46bps QoQ), aided by tight control on costs. Cipla is tracking ahead of its initial cost saving guidance of Rs 4-5 bn for FY21 and expects to retain part of these benefits in the coming quarters. Its US business outlook remains strong as respiratory/ niche filings add longer-term growth visibility.
HDFC Securities expects RoCE to expand by 550bps over FY20-23e, driven by operating leverage benefits and cost optimisation efforts. Maintain BUY rating with revised target price of Rs 1020/sh: Reuters