Cipla shares jump 6% on robust Q1, positive commentary
Heavy computer-based trading caused a rush of orders for dozens of stocks, ranging from well-known bellwethers like General Electric to tiny Wizzard Software Corp, whose shares soared to $14.76 after closing the previous day at $3.50. The NYSE has cancele
Shares in drug major Cipla soared over 6 per cent Wednesday on the back of robust June quarter.
Cipla said net sales jumped 23 per cent year-on-year at Rs 1,958 crore against Rs 1,591 crore. Quarterly net profit jumped 58 per cent yoy at Rs 401 crore over Rs 253 crore last year.
The domestic formulation business grew 30 per cent, which was way above the Street estimates of 17 per cent growth. EBITDA margins, a key measure of profitability, grew at 27.5 per cent against estimates of 24 per cent. The generic Lexapro, which is a blockbuster anxiety and depression drug, helped boost the margins in the April-June quarter.
Bank of America Merrill Lynch said the structural improvement in margins was due to better sales mix. The investment bank raised it target price on the stock to Rs 420.
The company's commentary on domestic business remains strong boosting sentiments in the stock.
At 10.13 a.m., shares in the company traded 5.3 per cent higher at Rs 356.60 in a weak Mumbai market.