ET Markets
12,248.2567.9
Stock Analysis, IPO, Mutual Funds, Bonds & More

Brokerages slash target price on Cipla, CLSA downgrades to underperform

Cipla reported a consolidated net loss of Rs 61.79 crore for the quarter ended March.

, ET Bureau|
Updated: May 26, 2017, 11.34 AM IST
0Comments
Brokerages have slashed target price on Cipla after the company's weak showing in the fourth quarter results.
Brokerages have slashed target price on Cipla after the company's weak showing in the fourth quarter results.
MUMBAI: Brokerages have slashed target price on Cipla after the company's weak showing in the fourth quarter results.

Cipla reported a consolidated net loss of Rs 61.79 crore for the quarter ended March as against net loss of Rs 92.83 in the corresponding quarter last year.

Cipla’s consolidated total revenue rose 6.84 per cent to Rs 3,604.79 crore in the quarter.

Ambit Capital said that the revenue and EBITDA margin were lower than estimated.The brokerage has reduced target price to Rs 410 from Rs 525 due to a 20 per cent cut in earnings estimate for FY18 and FY19.

For CLSA the key disappointment in Cipla's fourth quarter results was the EBITDA margin which came in 4 per cent below its estimates.

"Slower-than-expected margin improvement drives 20 per cent EPS cut for FY18-19CL. We reduce our target
price to Rs525 from Rs660 and downgrade the stock to U-PF (underperform) from O-PF (outperform)," said CLSA.

Macquarie has cut EPS estimates on Cipla by 15 per cent for FY18 and 12 per cent for FY19, and therefore target price to Rs 550 from Rs 626.

"While we are positive on the long-term potential of Cipla (driven by US growth and the resultant operating leverage), we would look to add on weakness given the limited valuation buffer at ~18x FY19E PER," said Macquarie, maintaining neutral rating.

HSBC has also cut target price to Rs 568 from Rs 635.

Also Read

Cut in personal tax possible: CLSA

View: How CLSA had the life squeezed out of it

CLSA’s India division too witnessing an exodus

Jio annual operating income may double in 2 years: CLSA

CLSA maintains buy on UPL, target price Rs 720

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service