Shares of Cipla Ltd jumped nearly 3 per cent to hit intraday high of Rs 531.10 even after the pharma company reported lower-than-expected net profit in the June quarter.
The Mumbai-based pharmaceutical company's profit numbers were impacted by the Indian government's measures to cut drug prices.
Cipla's net profit came in at Rs 365 crore, compared with expectations of Rs 376 crore. On an annual basis, Cipla's net profit declined 44 per cent. A sharp jump of 40 per cent in research and development expenses also hurt the profit numbers.
The Mumbai-based pharmaceutical company's profit numbers were impacted by the Indian government's measures to cut drug prices.
Cipla's net profit came in at Rs 365 crore, compared with expectations of Rs 376 crore. On an annual basis, Cipla's net profit declined 44 per cent. A sharp jump of 40 per cent in research and development expenses also hurt the profit numbers.
During the quarter, Cipla's operational profit came in at Rs 611 crore as against Rs 1,035 crore during the same quarter last year.
Meanwhile, CLSA has upgraded Cipla to 'outperform' from 'underperform'. It sees favourable risk-reward ratio at current levels and expects earnings growth will be strong in FY18-19. CLSA has a target price of Rs 570 per share.
On a year on year basis, Cipla shares are down 18 per cent.
As of 10:06 a.m., shares of Cipla traded 1.11 per cent higher at Rs 521.75, outperforming the Nifty which was trading on a flat note.
Meanwhile, CLSA has upgraded Cipla to 'outperform' from 'underperform'. It sees favourable risk-reward ratio at current levels and expects earnings growth will be strong in FY18-19. CLSA has a target price of Rs 570 per share.
On a year on year basis, Cipla shares are down 18 per cent.
As of 10:06 a.m., shares of Cipla traded 1.11 per cent higher at Rs 521.75, outperforming the Nifty which was trading on a flat note.
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