X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Cipla in high gear, ups R&D budget - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Sep 4, 1999

    Cipla in high gear, ups R&D budget

    According to newspaper reports, pharmaceutical major Cipla has earmarked Rs 600 m capital expenditure in FY2000. About 50% of this amount will be directed to research and development while the rest will be used to upgrade existing facilities for exports.

    Cipla (FY99 turnover 6.2 bn) is the second largest company in the domestic formulations market. Its wide product range covers over 10 therapeutic segments including antibiotics, anti-asthamatics, cardiovasculars and anti-cancer segments. Its brands Novamox, Norflox and Ciplox are amongst the 25 top-selling brands and 11 of its products feature in the top 250 products in India.

    The company has upped its research and development budget expenditure by 25% from Rs 240 m in FY99. This means that the company's R&D expenditure as a percentage of sales has also gone up from 3.9% in FY99 to 4.3% in the current year's estimations.

    According to chairman and managing director, Y. K. Hamied, the company expects its sales to top Rs 7 bn in FY2000 (up 13% over FY99), of which over Rs 1.5 bn will come through exports of pharmaceutical products. Net profit in the same year has been estimated to be around Rs 1.3 bn. Cipla appears well on its way to achieve its sales target of Rs 7 bn, as it has already achieved Rs 3.4 bn in the first five months of the current financial year.

    The chairman also announced a 2:1 bonus issue at the extraordinary general meeting (EGM) of shareholders yesterday. The management has raised the company's authorised capital to Rs 650 m from Rs 250 m.

    The company has signed a supply-cum-marketing agreement with Zenith Goldmine of the US for flutamide formulate branded as Cytomid. The formulation is indicated for the management of advanced prostratic cancer in previously untreated patients. The company has already obtained the requisite licences and approvals required to market the products in the US.

    Market view:
    Analysts in view of its strong domestic presence and consistent performance have rated the stock as a 'BUY'. The stock price has nearly doubled in the recent rally, helped largely by market anticipation of a bonus issue (which turned out to be true). With the management considering a stock split, the stock is likely to strengthen further in the coming weeks. Currently it is trading at Rs 2,700 plus levels.

     

     

    Equitymaster requests your view! Post a comment on "Cipla in high gear, ups R&D budget". Click here!

      
     

    More Views on News

    Cipla: Operating Margins Improve (Quarterly Results Update - Detailed)

    Mar 8, 2017

    Cipla has announced its results for the December quarter (1QFY17) results. The company has reported a decline of 6.4% YoY in sales while profits were down by 43.7% YoY.

    Cipla: Weak Quarter, Positive Triggers Ahead (Quarterly Results Update - Detailed)

    Sep 19, 2016

    Cipla has announced its results for the June quarter (1QFY17) results. The company has reported a decline of 6.4% YoY in sales while profits were down by 43.7% YoY.

    Sun Pharma: Bottomline Slips into the Red Amidst Challenging Environment (Quarterly Results Update - Detailed)

    Aug 14, 2017

    A challenging environment and one-time expense pushes Sun Pharma into a loss in the first quarter.

    Lupin: Bigger Challenges or Bigger Margin of Safety? (Quarterly Results Update - Detailed)

    Aug 14, 2017

    GST impact coupled with price erosion in US leads to lower profits for the quarter.

    Dr Reddy's: US Pressure Continues to Haunt (Quarterly Results Update - Detailed)

    Aug 8, 2017

    Profits plunge due to higher raw material costs.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Profitable Investment in the History of the World(Vivek Kaul's Diary)

    Aug 8, 2017

    'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    CIPLA SHARE PRICE


    Aug 21, 2017 (Close)

    TRACK CIPLA

    CIPLA 5-YR ANALYSIS

    Detailed Financial Information With Charts

    COMPARE CIPLA WITH

    MARKET STATS