Cipla stock: On March 2nd, Cipla’s stock experienced a notable uptick, marking a gain of 1.43 percent. This surge brought it tantalizingly close, just Rs 2 away, from reaching the 52-week high it had achieved in the preceding session.
From February 26 to March 1, the US Food and Drug Administration (USFDA) examined a production facility of subsidiary Cipla (Jiangsu) Pharmaceutical in Qidong, Jiangsu Province, China. According to Cipla, the inspection resulted in zero Form 483 observations.
The company notified bourses in a different filing that it had successfully transferred its generics business. On March 1, 2024, the company completed the transfer of Generics Business Undertaking to Cipla Pharma and Life Sciences Limited, a wholly-owned subsidiary of the company, as a going concern on a slump sale basis, Cipla stated. Cipla stock
The company had previously stated that the purchase would aid in capitalizing on the high-growth potential business by boosting investments in new launches, expanding penetration in Tier 2–6 towns and cities, and enhancing patient access through premium generic medications.
Over the last month, the stock has increased by more than 6%, and it has gained 67% over the last year.
Financials
For the quarter that ended on December 31, 2023, the pharmaceutical giant declared a consolidated net profit of Rs 1,068.4 crore, which is 32.25 percent more than it was for the same period the previous year. In the third quarter of the preceding fiscal year, the net profit was Rs 807.8 crore.
The total revenue increased by 13.66 percent to Rs 6,603.81 crore.
Brokerage Call
Cipla’s growth is driven by more than just gRevlimid cash flow constraints. Excellent performance and persistent revenue necessitate a premium valuation. For this reason, we are increasing the core business multiple from 27x to 29x. We are increasing FY24E EPS by 6% while keeping FY25 essentially the same. In a post-results statement, analysts at Nuvama Institutional Equities had recommended “buy” with a target price of Rs 1,600 (from Rs 1,350) and a rollover to Dec-25E.
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