Cipla falls on June-quarter profit miss

Reuters August 8 | Updated on August 08, 2019 Published on August 08, 2019

Shares of Cipla Ltd fell as much as 3.5 per cent to Rs 500.25 on Thursday morning. The drugmaker posted a 6 per cent jump in June-quarter profit to Rs 478 crore ($67.48 million), missing estimates of Rs 496 crore.

Domestic trade generics business would collapse, while FY 20 domestic growth would likely fall to 4-5 per cent, Kotak Institutional Equites said.

Uncertainties remain around the trade generics ramp-up in India and the slowdown in the South Africa tender business, according to Nomura.

Jefferies expects margins to moderate from current levels even as revenues improve, led by mix and higher research and development. It has cut TP to Rs 520 from Rs 535 and retained a “hold” on the stock.

Around 2.6 million shares changed hands, versus the 30-day average of 1.6 million shares.

Up to last close, Cipla was down 0.23 per cent this year, while peer Lupin, which posted a 49 per cent rise in Q1 profit on Wednesday, fell 7.3 per cent ($1 = 70.8325 rupees).

Published on August 08, 2019
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