Shares of Cipla Ltd gained more than 2% at the opening of trading on Thursday after the big pharmaceutical company on Tuesday reported consolidated net profit of Rs 756.88 crore for the third quarter ended December 31, 2021, almost flat compared to the period of the previous year.
As of 9:45 a.m., shares of the pharmaceutical company were trading at Rs 921.40, up 17.30 points, or 1.91% higher on BSE.
In the corresponding quarter of last year, the company recorded a net profit of Rs 751.6 crore. CNBC-TV18 Polls had predicted a profit of Rs 671.1 crore for the quarter under review.
The company’s total revenue from October-December operations increased by 6% to Rs 5,478.86 crore from Rs 5,169 crore in the corresponding period of the previous fiscal year, it said. Cipla said in a regulatory filing.
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“I am delighted to see the strong launch and commercial momentum in our core markets during the quarter. The execution of our portfolio in the branded markets of India and South Africa and the strong breathing pull that drove our US generic franchise to a multi-quarter high were key drivers. “said Cipla MD and Global CEO, Umang Vohra.
Brokerage firm Jefferies retained a ‘buy’ rating on the stock with a target price of Rs 1,093. The company’s third-quarter revenue was in line, but EBITDA and profit were 3% lower to estimates, Jefferies said.
Citi maintained a ‘buy’ rating on the stock with a target of Rs 1,120 as the company’s Q3 EBITDA/profit was 6%/7% ahead and maintained strong momentum on key markets. Margin was higher quarter on quarter despite cost pressure, helped by cost optimization. We expect earnings growth to remain strong even on a strong FY22 basis, the brokerage said.
CLSA also has a ‘buy’ rating on the pharmaceutical company’s shares with a target price of Rs 1,150 as the third quarter was in line as strong sales in India and the US offset weaker prices. international sales. Reinvestment via calibrated R&D strategies should drive growth in the medium and long term. Valuations are attractive, given long-term growth prospects, according to the brokerage.
(Edited by : Akanksha Upadhyay)