Review

CIPLA

Ticker : 500087
FV : Rs 2        
52-Week H/L : Rs 632.05/356.75

We had recommended Cipla Limited in volume no. 36, issue no. 26 (dated April 20, 2020), when the scrip was trading at Rs 600.55. Cipla Limited is a pharmaceutical company, having strategic business units, which includes active pharmaceutical ingredients (APIs), respiratory as well as Cipla Global Access.The stock was previously recommended based on the healthcare and pharma sectors benefitting from COVID-19 pandemic. 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 75  crore in the corresponding period for the previous fiscal year. As supply lines for key raw materials from China can be seen getting back to normalcy, Cipla is expected to maintain stable earnings despite the ongoing pandemic. Hence, we recommend to HOLD.