Cipla: Cipla surges 10% with rise in price targets

Mumbai: Shares of drugmaker Cipla surged nearly 10% on Thursday as analysts raised their price targets on the stock after better-than-expected first quarter results. These analysts have increased their price targets by 2-35%, according to data compiled by Bloomberg.

The average price target of the 28 analysts, whose ratings and price targets that have been compiled by Bloomberg, is ₹1,161. The stock closed at ₹1,171.55, up 9.6% over the previous close.

Brokerage Jefferies upgraded the stock to buy from hold after the June quarter earnings citing steady growth in India and ongoing momentum in the US. Most of the other large broking firms have maintained their ratings on the stock.

Nomura said Cipla expects revenue growth momentum to sustain in key markets and raised FY24 EBITDA (Earnings Before Interest Tax Depreciation Amortization) margin guidance to 23% from 22% earlier.

Cipla shares have gained 9.53% so far in 2023 as against an 18.87% advance in the Nifty Pharma Index.

Kotak Institutional Equities said Cipla is one of its top stock picks.

“We continue to like Cipla’s sharpened focus on domestic Rx, US generics and strong delivery of cost efficiencies,” said Kotak.