Strong Inhalation portfolio to drive growth…
Cipla is one of the largest producers of pMDIs (Metered Dose Inhalers) in the world with more than 65 different inhaled devices. Cipla derives 54% of its revenue from exports and 39% from domestic business.
We expect Cipla’s revenue and PAT to grow at a moderate CAGR of 13% and 14.5%, respectively over FY16-19E on account of key inhalation launches and scale up of US revenue from InvaGen acquisition. Hence, we recommend BUY rating on the stock with a TP of Rs633 at 22.5x FY19E earnings in-line with the peers.
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