 "Cipla gains post June quarter results")
Cipla has surged 5% to Rs 544 on the National Stock Exchange (NSE) after the company announced an improvement of around 200 basis points in base business EBITDA (earnings before interest, depreciation and taxes) margin.
The recent acquisitions of InvaGen Pharmaceuticals Inc. and Exelan Pharmaceuticals Inc. are EBITDA margin-accretive at a consolidated level with the integration plans progressing smoothly, Cipla said in a press release.
The company’s consolidated EBITDA margin stood at 17% for the quarter ended June 30, 2016 (Q1FY17) against 6.7% in March quarter.
“Cipla’s EBITDA margin rebounded to 17% post a weak H2FY16, which emerged as a key positive for Q1FY17,” said analysts at Religare Institutional Research.
Cipla’s global CEO and MD, Subhanu Saxena, has recently resigned and will be replaced by Umang Vohra effective 1 Sep’16. Given the latter’s experience in the generics industry, we are positive about the replacement. That said, we will closely monitor the progress as Cipla’s portfolio is still evolving for the US market and should yield back-ended benefits, the brokerage firm said in results review with maintain ‘hold’ rating on the stock and price target of Rs 555.
At 12:49 pm, the stock was up 5% at Rs 540 on the NSE, as compared to 0.57% fall in the Nifty 50 index. The trading volumes on the counter jumped three-fold with a combined 4.62 million shares changed hands on the BSE and NSE.
The recent acquisitions of InvaGen Pharmaceuticals Inc. and Exelan Pharmaceuticals Inc. are EBITDA margin-accretive at a consolidated level with the integration plans progressing smoothly, Cipla said in a press release.
The company’s consolidated EBITDA margin stood at 17% for the quarter ended June 30, 2016 (Q1FY17) against 6.7% in March quarter.
“Cipla’s EBITDA margin rebounded to 17% post a weak H2FY16, which emerged as a key positive for Q1FY17,” said analysts at Religare Institutional Research.
Cipla’s global CEO and MD, Subhanu Saxena, has recently resigned and will be replaced by Umang Vohra effective 1 Sep’16. Given the latter’s experience in the generics industry, we are positive about the replacement. That said, we will closely monitor the progress as Cipla’s portfolio is still evolving for the US market and should yield back-ended benefits, the brokerage firm said in results review with maintain ‘hold’ rating on the stock and price target of Rs 555.
At 12:49 pm, the stock was up 5% at Rs 540 on the NSE, as compared to 0.57% fall in the Nifty 50 index. The trading volumes on the counter jumped three-fold with a combined 4.62 million shares changed hands on the BSE and NSE.