November 6, 2012 / 4:57 AM / 5 years ago

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

* 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

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