CMP: 331

Cipla Ltd. manufactures fine chemicals and pharmaceutical preparations.

Cipla is a good bet in large-cap pharma space. Its currently trading at a P/E of 26 with decent dividend yields of close to 1% in the last 12 months. Minimal liability with decent cash and cash equivalents. Revenues have risen from 3572 Crores to 6123 Crores in the last 5 years. Profits have risen from 660 Crores to 967 Crores in the last 5 years. NPM has dropped a little from over 18% to less than 16% over 5 years. Cipla has outperformed in FY12 so far and has paid advance tax of Rs 90 Crore versus Rs 70 Cr (YoY), say sources. Buy, accumulate on dips and hold for long term gains.