Cipla: MA opportunity could be near-term trigger

Trading Calls - Equity F&O

Cipla, with its leadership in inhalation, focus on green chemistry and potential deployment of cash savings for new growth drivers, warrants attention

Cipla: M&A opportunity could be near-term trigger

Cipla | The company reported higher consolidated profit at Rs 714.72 crore in Q1FY22 against Rs 577.91 crore in Q1FY21, revenue rose to Rs 5,504.35 crore from Rs 4,346.16 crore YoY.

PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

Highlights – Q1 performance led by domestic business – Albuterol market share gains help offset pricing erosion in other parts of US portfolio – US business to have material uplift in FY23 – Utilisation of huge cash balance a key watch – Focus on green chemistry can be long-term re-rating driver While Cipla (CMP: Rs 945; Market Cap: Rs 76,264 crore) is ready with a COVID portfolio for another round of exigency, the focus is clearly shifting to long-term drivers in the form of green…