Margin expansion crucial for Cipla's stock

Continued efforts on growth in global markets is positive and will accrue benefits over time

Cipla continues to strengthen its global footprint. Wednesday's acquisition of Anmarate (Pty) Ltd in South Africa and Cipla USA entering into a collaboration with MEDRx a few days ago are steps in this direction. Such moves will help Cipla report healthy top-line growth, but analysts say improvement in profitability is equally crucial.

The acquisition of Anmarate will add to Cipla's strengths in South Africa, which contributes 13 per cent to its revenues. The US collaboration is to take further the development and commercialisation of MRX-4TZT.

To bolster the US generic business, Cipla has completed two acquisitions last year. It is on course