Cipla Reports 15.2% Surge in Q2 Net Profit to ₹1,303.53 Crore Amidst Revenue Growth, Despite Share Price Decline

Cipla Ltd announced a 15.2% increase in its consolidated net profit for the quarter ending September 2024, reaching ₹1,303.53 crore, compared to ₹1,131 crore in the same period last year. The company also reported a 6% year-on-year rise in revenue from operations, totaling ₹7,051 crore, up from ₹6,678 crore in the corresponding quarter of 2023.

Despite these positive results, Cipla’s shares fell by 1.69%, closing at ₹1,478.10. The stock has seen a decline of over 11% in the past month, although it has gained 25% over the last year. Over the past five years, Cipla shares have delivered a remarkable 212% return.

Q2 Results Highlights:

• EBITDA Margin: Achieved a record 26.7%, driven by operational efficiencies and a favorable product mix.
• One India Business: Grew by 5% year-on-year, although it faced historically slow seasonal growth in the Acute category, impacting both Branded Prescription and Trade Generics businesses.
• Branded Prescription Business: Continued to outperform the market in key chronic therapies.
• Consumer Health Business: Demonstrated strong growth of 21% year-on-year.
• North America Revenue: Reached $237 million, marking a 4% year-on-year increase, supported by traction in the differentiated product portfolio.
• One Africa Region: Experienced an overall revenue growth of 22%.

Market Position and Share Performance:

• Market Capitalization: Approximately ₹1,19,370.68 crore.
• 52-Week Price Range: High of ₹1,702 and low of ₹1,165.10.
• Institutional Investments: Increased holdings from various entities, including foreign institutional investors (FIIs) and mutual funds, indicating growing confidence in the company.

Investment Recommendation:

Investec has recommended a buy rating for Cipla, setting a price target of ₹1,900 per share.

Investors are encouraged to evaluate their investment strategies in light of Cipla’s solid performance and recent market fluctuations.

Disclaimer: This report is for informational purposes only and should not be considered financial advice. Investors should conduct their own research and consult with a certified financial advisor before making investment decisions. The performance of shares is subject to market risks.