Cipla Q4 Review - Weak India Performance; Cut Estimates By 11-12%: Motilal Oswal
A technician inspects vaccine vials for defects at a pharmaceutical plant in Pune. (Photographer: Sanjit Das/Bloomberg)

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:

  1. Ramping up the Covid-19 portfolio

  2. Outperforming in the generics franchise in India/South Africa

  3. Prioritising potential complex generics launches in the U.S.

  4. Scaling up the business in Europe, emerging markets

  5. Accelerating digital transformation across markets

We cut our earnings per share estimate by 12%/11% for FY22/FY23E, factoring in:

  1. Lower operating leverage

  2. Increased price erosion in the U.S. base business

  3. Inferior execution in the API segment

Click on the attachment to read the full report:

Motilal Oswal Cipla Q4FY21 Result Update.pdf

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