Pharma/ Biotechnology Investments Specialist, Vasuda Capital Management

Dr. Bhavneesh Sharma, MD, MBA

Pharma/ Biotechnology Investments Specialist

Vasuda Capital Management

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/3918" target="_blank" data-smartkarma-citation="entities:3918:1">Cipla Ltd (CIPLA IN)</a> is India’s third largest pharmaceutical company. Cipla’s common stock is not the cheapest among peers, looking at the forward EV/EBITDA or forward P/E ratio. Moreover, its profitability measures like operating margin, return on equity, and five-year revenue growth (CAGR) are not enough. Cipla's low presence in the U.S. market compared to its peers may explain underperformance.</p><p>We rate Cipla’s common stock neutral for now. We prefer <a href="https://www.smartkarma.com/entities/19974" target="_blank" data-smartkarma-citation="entities:19974:1">Aurobindo Pharma Ltd (ARBP IN)</a>, but will keep Cipla on our watchlist. We feel bullish about Cipla's restructuring efforts and plans for further U.S. expansion.</p>

Cipla Ltd (CIPLA IN) is India’s third largest pharmaceutical company. Cipla’s common stock is not the cheapest among peers, looking at the forward EV/EBITDA or forward P/E ratio. Moreover, its profitability measures like operating margin, return on equity, and five-year revenue growth (CAGR) are not enough. Cipla's low presence in the U.S. market compared to its peers may explain underperformance.We rate Cipla’s common stock neutral for now. We prefer Aurobindo Pharma Ltd (ARBP IN), but will keep Cipla on our watchlist. We feel bullish about Cipla's restructuring efforts and plans for further U.S. expansion.

Cipla: Not the Best Among Peers but Catching up Fast, Keep on Watchlist.