Cipla shares jump after Q1 earnings beat estimates; Citi upgrades to buy, Morgan Stanley remains overweight

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26 Aug, 2025 12:21

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Cipla share price jumped over 6 percent at open on August 10 after the company reported its June quarter earnings post market hours on August 7.

The company reported a 26.6 percent year-on-year growth in its Q1 FY21 consolidated profit at Rs 566 crore, backed by strong performance by India, emerging markets and Europe geographies and robust operating margin. Revenue from operations grew 9 percent to Rs 4,346.2 crore.

India business showed a 10 percent YoY growth at Rs 1,608 crore. South Africa, Sub-Saharan Africa and Cipla Global Access (SAGA) business grew 10 percent to Rs 763 crore. Emerging markets registered a 64 percent jump in business at Rs 457 crore and Europe showed a 19 percent rise to Rs 240 crore.

Numbers surpassed analysts' expectations on all fronts. Profit was estimated at Rs 338 crore and revenue at Rs 4,184 crore, according to the average of estimates of analysts polled by CNBC-TV18.

The stock price jumped over 74 percent in the last 6 months and was trading at Rs 773.95, up Rs 45.35, or 6.22 percent. It has touched a 52-week high of Rs 777.

Global research firm Morgan Stanley feels that the company continues to strengthen its base business with the respiratory monetisation in US gaining momentum. It remains overweight on the stock with target at Rs 847 per share, according to a CNBC-TV18 report.

Citi has upgraded the stock to buy with a target of Rs 860 per share. It is of the view that teh company beat forecast on strong execution across markets adding that strong momentum in revenues across markets stands out. The firm has raised FY21E/22 revenue, EBITDA & EPS by 4/5 percent, 17/19 percent and 31/34 percenr respectively.

CLSA has however lowered the rating of Cipla with a target of Rs 800 per share. The company has shown strong all-round performance and current valuation captures earnings outlook. It has raised FY21-22 EPS estimates by 6-17 percent.

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