Cipla is trading higher by 3% at Rs 383, its record high on back of heavy volumes on the counter. A combined 1.14 million shares have already changed hands on the counter in morning trades as against an average two million shares that were traded in past ten trading days.
The stock of country’s third-largest drug maker by revenue has outperformed the market by appreciating 13% in past one month after announcement of Q1 earnings. The Bombay Stock Exchange benchmark index has gained 1.3%, while the pharmaceutical sector index rise 5.2% during the same period.
For Q1FY2013, the company has reported a higher-than-expected 58% year-on-year (yoy) growth in net profit at Rs 400 crore, while the operating profit margins (OPM) expanded by 190bp yoy to 30.92%.
The company has guided for a revenue growth of 13-15% on sales and operating profit margins in 23-24% for the FY2013.
The analyst at Angel Broking has recommended with a BUY rating on stock. The analyst expect the company’s net sales to post 14% CAGR to Rs 9,130 crore and EPS to record an 18.4% CAGR to Rs 20 over FY2012–14.
