Margin gain remains a key trigger for Cipla, say analysts

Despite strong domestic growth and improving US prospects, analysts remain sceptical on improvement in profitability in the near-term

Shares of Cipla have rebounded about 9 per cent from the lows seen at  January-end, outperforming the BSE Healthcare Index that has risen 4.5 per cent during the period. While these gains have been led by improving growth prospects, further rise will depend on expansion in Cipla’s margins, say analysts. 

On the business front, prospects in the domestic markets (about 40 per cent of overall revenue) remain robust. Cipla’s leadership in the high-margin respiratory portfolio and fast-growing segments such as gastro, gynaecology, and neurology also points to a firm outlook. 

With improved field force productivity and new launches, analysts at