Investing in CIPLA: GOOD PHARMA STOCK to buy in 2009

Investing in CIPLA - Good Pharma Stock 2009Cipla is a major Indian Pharmaceutical Company. Its products include various prescription medicines and currently Cipla is the world's largest manufacturer of antiretrovial drugs to fight HIV/AIDS. This stock was mentioned in the list of BEST STOCKS to buy for 2009.

Company financials - Reasons for Investing in CIPLA.
In the past one year CIPLA has delivered nearly 0% returns as compared to a drop of 50% in Nifty. Currently CIPLA is trading at a price of 195 which amounts to a P/E ratio of 21.8. Here is a price volume chart, latest share price of CIPLA automatically updated daily by Icharts.

CIPLA Price Volume Chart Investment Strategy
The company has shown an average growth of about 25% in the past seven years. It is likely that this growth will be slightly affected in 2009. The company is practically debt free.

Latest Quarterly results of CIPLA
Cipla Ltd has announced the following Unaudited results for the quarter ended December 31, 2008: The results for the Quarter ended December 31, 2008 The Company has posted a net profit after tax of Rs 2234.40 million for the quarter ended December 31, 2008 as compared to Rs 2106.50 million for the quarter ended December 31, 2007. Total Income has increased from Rs 11155.20 million for the quarter ended December 31, 2007 to Rs 13604.80 million for the quarter ended December 31, 2008.
Thus net profit of this company has grown by about only 6%. This is not remarkable, but it is possible that the price will fall further which will make this stock more attractive. However this looks like a good stock to keep buying in small portions as soon as you see it trading at a P/E of less than 20. For latest P/E ratio of CIPLA visit Google Finance.

The NSE code of CIPLA is CIPLA. The BSE code of CIPLA is 500087.
Also read: Glaxo Pharma: Best Pharma Stock to invest in 2009.

Feb 5, 2009

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