MARKET EYE-India's Cipla surges to record high on earnings

Tue Nov 6, 2012 10:23am IST

Related Topics

Stocks

   

* Shares in Cipla gains 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.
* Cipla shares advanced 2.8 percent to 390.90 rupees as of 0437
GMT

 (manoj.dharra@thomsonreuters.com)
FILED UNDER:
  • Most Popular
  • Most Shared

Insight

REUTERS SHOWCASE

Border Talks

Border Talks

India names Ajit Doval as special envoy for China border talks.  Full Article 

WTO Deal

WTO Deal

U.S. seeks to step up India trade talks  Full Article 

Phone Masts

Phone Masts

American Tower to buy Bharti Nigeria phone masts for $1.1 billion  Full Article 

Infrastructure Plan

Infrastructure Plan

India targets private cash to build railways to its ports.  Full Article 

Shadow Banking

Shadow Banking

Reserve Bank planning more measures for NBFCs.  Full Article 

Auto Sector

Auto Sector

Hyundai Motor, Kia Motors lift 2014 global sales target on China, emerging markets  Full Article 

Oil Prices

Oil Prices

Some fund managers see oil falling to $60 without OPEC cut.  Full Article 

Project Shelved

Project Shelved

Jindal Steel shelves $10 bln project after coal setback.  Full Article 

Market Eye

Market Eye

Sensex, Nifty rise to record after China, ECB stimulus boosts risk appetite.  Full Article 

Reuters India Mobile

Reuters India Mobile

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