Cipla poised to maintain high growth, earnings may grow by over 20%

Growth is expected to be strong in the March 2017-18 quarter (Q4) as well and in the current financial year

Cipla, which has clocked better returns than most of its larger pharma peers in the past one year, has now outperformed the S&P BSE Sensex in the past one month. It has gained almost 11.5 per cent since the March-end lows, though its Pithampura unit got three observations from the Food and Drug Administration (FDA), the US drug regulator. The Street is showing confidence in Cipla primarily because of its strong growth prospects. After pegging earnings growth at over 30 per cent in 2017-18 (partly helped by a low base of 2016-17), analysts expect Cipla’s earnings to increase by over