Thursday, July 21, 2011

Cipla - Buy

Cipla has a product range comprising antibiotics, anti-bacterials, anti-asthmatics, anthelmintics, anti-ulcerants, oncology, corticosteroids, nutritional supplements and cardiovascular drugs. It is into anti-bacterial and anti-asthmatic segments and is the first player in Asia to launch non-CFC metered dose inhaler. DPCO coverage of Cipla is around 40 per cent. Exports grew by 30 per cent, exceeding Rs l0,500 million.

Both active pharmaceutical ingredients (APIs) and formulations contributed to the growth in business in the international market. Overseas business forms 45 percent of the company's total turnover. The company has its manufacturing facilities at Goa, Kurkumbh, Bangalore, Patalganga and Baddi.

Cipla has been among the major suppliers of anti-malarial drugs and drugs for neglected diseases such as schistosomiasis to international markets. With the launch of Lamivudine, the company has become one of the few companies in the world to offer all three component drugs of retroviral combination therapy (sidovudine and stavudine already launched).

The company plans to continue its R&D efforts with a major thrust on developing new products and delivery systems. It would also include patenting of newer processes/newer products/newer drug delivery systems/ newer medical devices/newer usage of drugs for both local and international markets. Development of agrotechnology, genetics and biotechnology for cultivation of medicinal plants and isolation of active ingredients from plant materials is also foreseen.

Considering strong growth prospects, Cipla can be considered for investment on long term basis. Scrip is getting good support around 300 levels while 360 is a strong resistance. Buy and hold for a 20% return for a 1 year holding period


Time Span Price Change %Change
Today 315.70 -1.40 -0.44
Week 323.25 -6.15 -1.90
Month 317.40 -0.30 -0.09
Three Months 321.20 -4.10 -1.27
Six Months 353.50 -36.40 -10.29
One Year 327.00 -9.90 -3.02

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