The general evaluation of CIPLA (IN), a company active in the Pharmaceuticals industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 2 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date October 29, 2021, the closing price was INR 905.05 and ...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
CIPLA: COVID / Operational efficiency drives earnings (CIPLA IN, Mkt Cap USD10.3b, CMP INR946, TP INR1000, 6% Upside, Neutral) CIPLA delivered better-than-expected 1QFY22 earnings, led by a superior product mix, operational cost efficiency, a healthy off-take of COVID-related products, and one-time income from the API segment. Cipla is poised to outperform the Domestic Formulation (DF) market and is progressing well on building a complex product pipeline for North America (NA). We raise ...
A director at Cipla Ltd sold 4,000 shares at 820.845INR and the significance rating of the trade was 54/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showi...
Q3FY20 result highlights Revs for the quarter stood at Rs43.7bn vs est of Rs43.5bn; US revs stood at $133m in line – Mgt indicated that gSensipar sales have largely normalized during the qtr in value terms India business grew 12% yoy to Rs17.8bn vs est of Rs16.8bn. Turnaround in trade generics occurred faster than expected (7% yoy); Branded generics segment grew 14% yoy; SAGA sales also beat est with rev of Rs8.3bn vs est of Rs7.9bn; 20% CC growth yoy EBITDA was Rs7.6bn (-17% qoq) vs est of...
Cipla: DF growth betters; product mix change leads muted earnings (CIPLA IN, Mkt Cap USD5.1b, CMP INR447, TP INR490, 10% Upside, Neutral) New strategy to strengthen synergy in India, more selectivity in R&D for US generics India and the US are the key geographies driving earnings growth for Cipla. Particularly in India, Cipla is looking to improve synergies in the areas of distribution, portfolio and customer focus across prescription, trade generics and OTC category. While its ANDA pipe...
Q2FY20 result highlights Revs for the quarter stood at Rs44bn vs est of Rs41.4bn; Q1 was Rs 39.9bn. Beat primarily driven by the US business - Revs of $135m vs est of $130mn – Mgt indicated that gSensipar sales have substantially normalized during the qtr in value terms India business grew 6% yoy to Rs 17.5bn vs est of Rs16.7bn. Turnaround in trade generics occurred faster than expected; Branded generics segment grew 13% yoy – partially aided by a strong anti-infective season; SAGA sales als...
CIPLA: Earnings driven by superior product mix (CIPLA IN, Mkt Cap USD5.5b, CMP INR482, TP INR500, 4% Upside, Neutral) US/domestic branded/EU drive revenue growth: CIPLA’s revenue increased 9.6% YoY to INR44b (in-line) in 2QFY20, led by improved sales in the US (+26% YoY) and EU (+35% YoY). Domestic business grew by ~6% YoY to INR17.5b and branded generics by 13% YoY. However, the SAGA business was muted at INR7.4b due to re-basing of the global access business. Within SAGA, South Africa p...
CIPLA: Focused CAPA required to resolve regulatory issues (CIPLA IN, Mkt Cap USD5b, CMP INR442, TP INR465, 5% Upside, Neutral) The USFDA conducted an inspection at Cipla's (CIPLA) Goa formulation site from 19-27th Sep'19 and issued a form 483 with 12 observations. We note that these observations are related to (a) equipment cleaning, (b) inadequate control over air pressure/microorganism/dust, (c) deficiency in systems for equipment used to control aseptic conditions, (d) concerns about pro...
Q1FY20 result highlights Revs for the quarter stood at Rs40bn vs est of Rs44.6bn; Q4 was Rs 44bn. Beat primarily driven by the US business - Revs of $161mn vs est of $150mn due to continued momentum on gSensipar (est - $40-45m for the qtr with ~90% GMs). Run-rate to drop from Q2 onwards. India business revs declined by 10% qoq to Rs 13.6bn vs est of Rs 17bn. Mgt cited Rs2bn impact due to a churn of distributors in the trade generics segment and Rs600m impact of deferrals in branded generic d...
CIPLA: Temporary issues in DF leads earnings miss; Niche opportunity in US drives earnings growth (CIPLA IN, Mkt Cap USD5.9b, CMP INR519, TP INR500, 4% Downside, Neutral) Decline in DF/SAGA/EM sales counterweigh US sales growth: 1QFY20 sales came in at INR40b, marginally up 1.3% YoY. The US remained the key driver for revenue growth. US sales grew 67% YoY to INR11b (USD162m; 28% of sales), led by ongoing sales from at-risk launch of g-Sensipar. However, this benefit was offset by (a) 12% ...
Q4FY19 result highlights Revs for the quarter stood at Rs 44bn vs est of Rs40bn; Q3 was Rs 40bn. Beat primarily driven by the US business which reported revs of $163mn vs est of $124mn due to at-risk launch of gSensipar. Adj for this launch (~$41mn), overall rev. stood at Rs 41.1bn. India business revs declined by 5.4% qoq to Rs 15bn vs est of Rs 15.3bn; SAGA sales also beat est with rev of Rs 8.23bn vs est of Rs 7.5bn Boosted by gSenispar, EBITDA was Rs9.6bn (46% qoq) vs est of Rs6.6bn desp...
Cipla: At-risk launches prove advantageous; on track to build a niche pipeline (CIPLA IN, Mkt Cap USD6.4b, CMP INR554, TP INR525, 5% Downside, Neutral) Revenues driven by US/Europe/API: Sales increased 19% YoY to INR44b (our estimate: INR41b), primarily driven by robust growth in the US business (+41% YoY CC to USD163m; 26% of sales) owing to new launches and ramp up in differentiated products (incl. at-risk launch of Sensipar). Europe business grew by 73% YoY to INR2b, led by the resolut...
Event Gilead has confirmed that Teva will be launching gTruvada in Sept-2020. We understand Cipla will likely be partnering with Teva on this launch Key highlights Gilead shared in its latest SEC filing that Teva will be launching gTruvada in Sept’20 as per its settlement; Gilead had not confirmed the launch timelines earlier. This is about an year earlier than expected Truvada is an anti-HIV drug with brand sales of ~$2.2bn Teva is the FTF on Truvada and we understand that Cipla is like...
Q3FY19 result highlights Revs came lower at Rs40bn vs est Rs40.6bn. Domestic sales came lower at Rs15.9bn (-1% yoy; est Rs17.1bn); adj for de-stocking, yoy growth was 6%. US sales grew strongly to $118mn ($108m in Q2; in-line). SAGA sales came higher at Rs7.8bn (+3% qoq) vs est of Rs7.2bn EBITDA came in lower at Rs7bn (flat qoq) vs est of Rs7.1bn; EBITDAM- 17.7% (17.5% in Q2) vs 17.5% est GMs came lower at 62.6% (64.2% in Q2) vs est of 64%. Mgt indicated that GMs have been impacted by ~150b...
CIPLA: Weak tender business impacts earnings; US generics – a key monitorable (CIPLA IN, Mkt Cap USD5.9b, CMP INR528, TP INR520, 2% Downside, Neutral) Strong US sales growth offset by weak SAGA business: Revenue grew at a muted ~2% YoY to INR40.1b (our estimate: INR42.5b) in 3QFY19 due to the high base in the domestic formulation (DF) business (40% of sales; -1% YoY) and the weak South Africa Global Access (SAGA) business (19% of sales; -11% YoY). Emerging business (17% of sales; -18% YoY...
Q2FY19 result highlights Revs came lower at Rs40.1bn vs est Rs41.5bn. Domestic sales came lower at Rs15.4bn (flat yoy; est Rs16.7bn). Sales were impacted by 0.6-0.7bn due to delayed onset of infective season. US sales came at $108mn ($100m in Q1; est of $110m). SAGA sales came lower at Rs7.5bn (-9% qoq) vs est of Rs8.5bn led by lower tender awards Mgt indicated that weakness in global tender sales has been a key driver for soft revenue growth in Q2FY19/H1FY19. Further, mgt indicated that the...
CIPLA: Muted quarter led mainly by tender biz; medium-term outlook weak (CIPLA IN, Mkt Cap USD6.2b, CMP INR564, TP INR540, 4% Downside, Neutral) A miss on all fronts: CIPLA’s revenue declined ~2% YoY to INR40.1b (our estimate: INR44.7b) in 2QFY19. Tender revenue in South Africa and Global Access/Emerging Market, and non-tender revenue in Europe declined significantly in the quarter. The impact, however, was partially offset by healthy growth in the US and flat growth in domestic formulati...
Q1FY19 result highlights Revs came lower at Rs38.5bn vs est Rs40.8bn. Domestic sales were lower at Rs15.4bn (+22% yoy) vs est of Rs16.5bn. US sales came surprisingly lower at $100mn ($105m in Q4FY18) vs est of $112mn. Mgt attributed it to SKU rationalisation ($5m) and supply disruptions ($5mn); API stood higher at Rs2bn (+48% qoq) vs est of Rs1.4bn. EBITDA came in lower at Rs7.3bn vs est of Rs8.4bn driven by revenue miss; 18.4% margins vs 20.6% est. GMs came in at 63% were in-line. SG&A cost...
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