Cipla share price fell 3 percent in the early trade on August 6, a day after the pharma company reported a 25.41 percent increase in its consolidated net profit to Rs 709.92 crore for the quarter ended June 30, 2021.
The company had posted a net profit of Rs 566.04 crore in the corresponding period of the previous fiscal.
Its consolidated revenue from operations for the quarter stood at Rs 5,504.35 crore against Rs 4,346.16 crore in the year-ago period, the company added.
Here is what brokerages have to say about the stock and the company after the June quarter earnings:
Citi | Rating: Buy | Target: Rs 1,140
Citi maintained a buy on the stock as the underlying margin trends were healthy in Q1 and does not see any material decline over the next couple of quarters.
The pick-up in Albuterol and Brovana should also help to some extent, while the company’s US pipeline is maturing and has the potential to drive strong operating leverage.
Macquarie | Rating: Outperform | Target: Raised to Rs 1,150
The research house has kept an outperform rating for the stock following a strong Q1 led by COVID-19 contribution and recovery in core branded business.
The company is well-positioned to monetise respiratory portfolio in DMs, while the monetisation of the respiratory portfolio is not priced in. Macquarie has changed FY22-24 estimates by 1-3 percent.
CLSA | Rating: Buy | Target: Raised to Rs 1,150 from Rs 1,080
CLSA has raised FY22-24 EPS estimates by 3-5 percent. The company has a strong presence in branded markets in India and South Africa.
A high number of complex launches were lined up for the US starting in FY23, while new launches were catalysts for margin expansion & ROIC expansion towards a 17-20 percent target.
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JPMorgan | Rating: Neutral | Target: Rs 800
JPMorgan has kept a neutral call on the stock as the EBITDA guidance of 22-23 percent margin for FY22 seems tough.
The stock is not factoring in the near-term margin risk and the medium-term pipeline does provide visibility; would wait for a better entry point.
Sharekhan | Rating: Buy | Target: Rs 1,150
Cipla expects India business to post strong growth backed by growth in core therapies, synergies from One-India Strategy and an expected pick-up in chronic as well as acute therapies.
Excluding the COVID-19 effect, management expects the Indian pharmaceutical market (IPM) to grow by 10-12 percent for FY2022 and Cipla is expected to outpace the industry’s growth.
A ramp-up in gAlbuterol, approval for Arformoterol Tartrate and a strong product pipeline, including complex generics, could drive US sales.
At 0917 hours, Cipla was quoting at Rs 925.15, down Rs 20.05, or 2.12 percent, on the BSE.
The share touched a 52-week high of Rs 997.20 on June 30, 2021 and a 52-week low of Rs 701.50 on September 9, 2020. It is trading 7.23 percent below its 52-week high and 31.88 percent above its 52-week low.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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