Cipla surpassed it’s estimates, price jumping over 6 per cent at open on August 10. The company reported its June quarter earnings post market hour on August 7.
With a consolidated profit of Rs 566 crore, the company reported a 26.6 per cent year-on-year growth in its Q1 FY21. The company backed by strong performance in India, emerging markets, Europe geographies and robust operating margin. Revenue from operations grew 9 per cent to Rs 4,346.2 crore.
The business in India shows 10 per cent growth at Rs 1,608 crore. South Africa, Sub-Sharan Africa and Cipla Global Access(SAGA) business grew 10 per cent to Rs 763 crore. 64 per cent jump in business at Rs 457 crore was shown by emerging markets whereas European market showed a 19 per cent rise to Rs 240 crore.
Profit was estimated at Rs 338 crore and revenue at Rs 4,184 crore, surpassing the analysts expectations on all fronts. The stock price jumped over 74 per cent in the last 6 months and was trading at Rs 773.95, up Rs 45.35, or 6.22 per cent. It has touched a 52- week high of Rs 777.
Morgan Stanley, a Global research firm are of view that the company will continue to strengthen its base business with respiratory monetization in US gaining momentum. According to CNBC- TV18 report, it remains overweight on the stock with target at Rs 847 per share.
Citi has upgraded the stock to buy with a target of Rs 860 per share. It is of the view that the company beat forecast on strong momentum in revenues across markets stands out. The firm has raised FY21/22 revenue, EBITDA & ES by 4/5 per cent, 17/19 percent and 31/34 per cent respectively.
However the CLSA has lowered the rating of Cipla with a target of Rs 800 per share. The company has shown a strong all- round performance and current captures earnings outlook. It has raised its estimates by 6-17 per cent.
