Cipla Q4 Review - Weak India Performance; Cut Estimates By 11-12%: Motilal Oswal
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Motilal Oswal Report
Cipla Ltd. delivered a weaker-than-expected performance in Q4 FY21, weighed by moderate YoY growth in India domestic formulation/South Africa and YoY decline in active pharmaceutical ingredient sales for the quarter.
The company’s FY22 goals include:
Ramping up the Covid-19 portfolio
Outperforming in the generics franchise in India/South Africa
Prioritising potential complex generics launches in the U.S.
Scaling up the business in Europe, emerging markets
Accelerating digital transformation across markets
We cut our earnings per share estimate by 12%/11% for FY22/FY23E, factoring in:
Lower operating leverage
Increased price erosion in the U.S. base business
Inferior execution in the API segment
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