Cipla hits 52-week high post Q2 results; Citi maintains ‘neutral’ rating

NEW DELHI: Cipla surged over 3 per cent in early trade on Tuesday to hit its 52-week high of Rs 395.95 after the company reported 61 per cent jump in net profit for the September quarter.

At 09:50 am, Cipla was trading 2.8 per cent higher at Rs 391.40. It has hit a low of Rs 389.90 and a 52-week high of Rs 395.95 in trade today.

The country's second-biggest drug maker said net profit rose to 500 crore from 309 crore in the year-ago quarter. A strong export market and systematic rationalisation helped the drugmaker achieve a 23 per cent increase in revenue to Rs 2,220 crore.

One of the biggest contributors to these set of numbers was the sale of Lexapro, an anti-depressant that Israel's Teva was sourcing from Cipla. Teva had 180-day exclusivity over the drug, ET said in a report.

Citi maintains ‘neutral’ rating on Cipla but has upped the price target from Rs 360 earlier to Rs 390.

“The brokerage has also raised earnings estimates by 8 per cent and 5 per cent for fiscal 13 and 14 to incorporate higher than expected lexapro sales and lower share of tender business sales,” Citi said in a report.