Hem Securities recommends `Buy` on Cipla with a price target of Rs 370 as against the current market price (CMP) of Rs 294.15 (Nov. 9, 2009).

``With the expectation of 10 to 12% growth in revenues along with rich product pipeline for the regulated markets are the key drivers for the growth of the company. Further, tie-ups with 21 players in the USA for marketing 118 ANDAs of which 36 approved and 23 products already launched will help its revenues. Also the partnership with Chinese company for launch of biosimilar could be a booster to tap high value market over the medium term. Being the market leader Cipla seems to be extremely attractive investment opportunity.

Presently, the stock is trading at Rs 294 which is at 22.85 times to its earnings and 5.29 times to its book value of Rs 55.93. Since the stock offers good opportunity, we initiate a `BUY` signal on the stock with a target price of Rs 370 in medium to long term investment horizon expecting an appreciation of about 25% from the current level of Rs 294,`` the broking house said.