Cipla’s shares hit a record high of Rs 814.45 on Monday before ending at Rs 795.65, up 9.2 per cent from the previous close. Cipla reported a 26.6 per cent rise in its consolidated net profit to Rs 566 crore.
By ET Bureau |
Agencies
Antique, Edelweiss, Elara, Kotak Institutional and Nomura have maintained buy ratings on the stock.
Mumbai: Brokerages have given a thumbs up to drugmaker Cipla’s June quarter results, with most maintaining buy rating and raising target price on the stock by as much as 74 per cent.
Cipla’s shares hit a record high of Rs 814.45 on Monday before ending at Rs 795.65, up 9.2 per cent from the previous close. Cipla reported a 26.6 per cent rise in its consolidated net profit to Rs 566 crore.
“Cipla continues to strengthen its base business, respiratory monetisation in the US is gaining momentum, and the balance sheet is strengthening,” said Morgan Stanley, retaining overweight rating on the stock and revised target price to Rs 847 from Rs 486.
Antique, Edelweiss, Elara, Kotak Institutional and Nomura have maintained buy ratings on the stock. Brokerages have raised target price on the stock by 11-74 per cent. Kotak Institutional Equities said it expects Cipla’s e performance to sustain over the coming quarters and sees increased visibility over medium term earnings, given signs of improving execution in India as well as a strong US respiratory build-out, driving operating leverage.
CLSA, however, downgraded Cipla as it believes the current valuation captures earnings outlook. “The recent rerating of Cipla’s PE amply factors in the interest in respiratory product monetisation.”
