Cipla surges to record high on earnings

Tue Nov 6, 2012 12:29pm IST

Related Topics

Stocks

   

Reuters Market Eye - Shares in Cipla (CIPL.NS) gain as much as 4.06 percent to a record high after the drug maker reported a bigger-than-expected 62 percent surge in July-September net profit.

Despite the surge in share prices, Citigroup says on Tuesday it remains cautious, saying the earnings surprise were mainly driven by the generic version of anti-depressant drug Lexapro, whose exclusivity would tail off in the second half of the fiscal year.

Cipla had earlier given a revenue guidance of up to 12 percent for the current fiscal year, but Citigroup says the company management has now revised its topline growth to 15 percent or above in FY13.

Citigroup adds positives such as better product mix and upside from a weaker rupee appeared factored into estimates and valuations.

The bank raised its target price to 390 rupees from 360 rupees, but retained its 'neutral' rating.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

IT Sector

REUTERS SHOWCASE

Telecom Sector

Telecom Sector

RIL telecoms unit in tower lease pact with ATC  Full Article 

Tracking Asia

Tracking Asia

Asian stocks subdued on Ukraine caution  Full Article 

Commodities

Commodities

Gold falls to 2-1/2 week low in thin trade  Full Article 

A Tough Sell

A Tough Sell

Insurance against a China financial crisis  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage