Cipla Shares Soar 6% As Q4 Numbers Impresses Brokearges, Investors

Cipla’s share price was surging at the bourses on Monday after the company’s March quarter results impressed investors. The stock went up 6% to hit an intraday high of ₹1,425.95.

What Happened: Cipla reported a net profit of ₹939.04 crore for the quarter ending March 31, marking a 79% increase from the previous year’s ₹525.65 crore. This exceeded analyst predictions of ₹897 crore. The company’s revenue reached ₹6,163.24 crore, a 7.4% rise from ₹5,739.30 crore last year, slightly below street expectations of ₹6,242 crore.

Analyst Reactions: JP Morgan maintained its “overweight” rating for the stock with a price target of ₹1,540. The brokerage said that the drugmaker’s EBITDA was in line with estimates while net profit beat its expectations.

HSBC also maintained its “buy” call for the stock with a target price of ₹1,600. The brokerage firm said that the company’s revenue came in slightly lower than its estimates. The analyst however highlighted that better product mix and cost efficiency helped the EBITDA beat estimates.

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Kotak Securities maintained its “add” rating for the stock with a price target of ₹1,550. The brokerage highlighted that the company maintained a steady performance despite the seasonally weak quarter, achieving a 12% year-on-year growth in EBITDA. The analysts also noted that the pharma giant has provided guidance for a robust EBITDA margin of 24.5-25.5% for the year ending March 2025.

Jefferies, on the other hand, maintained its “hold” rating for the stock with a price target of ₹1,400. The research firm said that the company’s March quarter results missed its estimates on revenue and EBITDA.

Price Action: Cipla’s share price was up 4.59% to trade at ₹1,401 shortly after market open on Monday.

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