Cipla Q4 Review - Weakness In South Africa, U.S. Play Spoilsport To Cost Savings Benefits: Prabhudas Lilladher

Generics medicines manufactured by Cipla Ltd. (Source: Company website).

Cipla Q4 Review - Weakness In South Africa, U.S. Play Spoilsport To Cost Savings Benefits: Prabhudas Lilladher

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Prabhudas Lilladher Report

We revise our earnings estimates for FY22E by 2% while increasing by 3% in FY23E due to better India formulations prospects from Covid-19 opportunity, partially offset by lower growth in South Africa and other emerging markets.

The company surpassed its earlier cost saving of Rs 4-5 billion for FY21E and we believe part of it would continue in FY22E/23E too.

Its recent performance in Q4 was below our estimates due to:

  1. Unfavorable product mix with lack of Covid-19 portfolio growth in India.

  2. Anti-infective portfolio continued to setback lower volume in India.

  3. Stagnant U.S. sales at around $140 million over four quarters, despite launching key products.

  4. Lack of growth in South Africa with adverse forex and lower tender business.

Click on the attachment to read the full report:

Prabhudas Lilladher Cipla Q4FY21 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.