Cipla share price jumps over 8% after robust Q1 performance; brokerages raise target price

livemint.com:

Cipla share price rallied more than 8% in the early trade on Thursday after the pharma company reported robust earnings for the first quarter of FY24. Cipla shares jumped as much as 8.82% to ₹1,163.00 on the BSE. Drug major Cipla posted a 45.1% rise in its consolidated net profit in Q1FY24 at ₹995.7 crore as compared to ₹696.4 crore in the corresponding quarter of the last year.

The company’s revenue during the quarter ended June 2023 increased 17.7% to ₹6,328.9 crore from ₹5,375.2 crore, YoY, driven by performance in India, US & South Africa. Read here: Cipla Q1 results: Net profit rises 45% YoY to ₹996 crore; US business posts highest ever revenue of $222 million The company’s US business reported the highest ever revenue of $222 million, registering a growth of 43% YoY growth driven by robust momentum in differentiated portfolios. While resonating buoyancy on near-term generics pricing in the US, Cipla has hiked its US sales and EBITDA margin guidance for FY24.

Cipla raised its EBITDA margin guidance for FY24 to 23% from 22% earlier. The management raised its North America (NA) base business quarterly run-rate guidance to $210-215 million from $195 million earlier. Strong US sales growth and sustained momentum in the domestic market helped Cipla Q1 performance beat estimates.

This led analysts to give bullish outlook on Cipla shares with most brokerage houses raising target price on the stock. Here’s what brokerages have to say: Jefferies upgraded Cipla to Buy and raised the target price to ₹1,210 per share from ₹900 earlier. It said that Q1FY24 EBITDA beat estimate by 12% despite an in-line revenue.