Fundamental Analysis

CIPLA 

{Ticker : 500087 { BUY: Rs 600.55 { Target: Rs 670

Cipla Limited is a pharmaceutical company, having strategic business units, which include active pharmaceutical ingredients (APIs), respiratory and Cipla Global Access. The company manufactures metered dose inhalers, dry powder inhalers, nasal sprays, nebulisers and a range of inhaled accessory devices. Its geographical segments include India, USA, South Africa and the rest of the world. On a quarterly consolidated front, the company reported net sales of Rs 4,234.55 crore in Q3FY20, increasing by 8.41 per cent from Rs 3,906.20 crore in Q3FY19. Operating profit was reported at Rs 830.46 crore in Q3FY20, registering a growth of 5.63 per cent from Rs 786.20 crore in Q3FY19. Net profit saw a growth of 9.4 per cent to Rs 353.58 crore in Q3FY20, from Rs 323.20 crore in the corresponding period for the previous fiscal year. In the current economic environment, the healthcare and pharma sectors are expected to benefit the most in the fight against COVID-19. Thus, we recommend a BUY.