Cipla Share: Correction in pharma stock despite 12% consolidated net profit increase in Q2

Cipla Share Price: Share of Cipla Ltd (NSE: CIPLA) corrected in the D street on Monday. The downtrend follows despite the third-largest pharma company in India reporting a consolidated net profit increase of 12 per cent.  

Cipla share quoted Rs 1,125.00 apiece on the NSE, at 12: 19 PM, declining around 1.84 per cent from its previous close of Rs 1,146.10.

CIPLA Q2 RESULT

Drug major Cipla posted its consolidated net profit of Rs 797 crore, an increase of 12 per cent for the second quarter ended September 30 on the back of robust sales across domestic and the US market.

Nilesh Jain, technical analyst from Zee Business said, "The stock result is in line with the estimates of the D street. From the last 13- 14 trading sessions, the stock was gradually moving higher. It is specifically profit booking, nothing major for the stock to correct marginally."  

The Mumbai-based drug maker's total revenue from operations rose to Rs 5,829 crore for the September quarter from Rs 5,520 crore in the year-ago period, Cipla said in a regulatory filing.

Commenting on the Q2 results, Cipla MD and Global CEO Umang Vohra said the company's performance reflects strong momentum in the domestic business and solid execution on differentiated portfolios in the US.

Brokerages are mixed on Cipla stock following the announcement of the second quarter results.

Cipla has delivered a positive return of 24 per cent to its investors in the past 1 year. The stock's 52-week range is Rs 1,185.25 to Rs 850.00. Cipla has a market cap of around Rs 91,34,600 crore, as per NSE data.

Meanwhile, frontline indices BSE Sensex and NSE Nifty50, traded with minor gains at 60,963.05 and 18,149.00, respectively.

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