Pharma Major Cipla Declares 15.2% YoY Surge In Q2 Net Profit, Shares In Red; Buy?

Large cap pharmaceuticals firm, Cipla Ltd today declared a surge of 15.2% in its consolidated net profit for the quarter ended September 2024 to Rs 1303.53 crore as against the net profit of Rs 1131 crore reported in the corresponding quarter of last year. Its revenue from operations surged 6% YoY to Rs 7051 crore for the July to September 2024 quarter as compared to Rs 6678 crore declared in the similar quarter of last year. However, despite surge in net profit, Cipla Ltd shares traded in red and settled with the decline of 1.69% to Rs 1478.10 per share.The company's market capitalisation stood at Rs 1,19,370.68 crore. Cipla shares declined over 11% in last 1-month and gained 25% in last 1-year. In last 5-years, Cipla shares delivered highest returns of 212%. Check details below:

Cipla Ltd Q2 Results:

Commenting on the results, Umang Vohra, MD and Global CEO, Cipla Ltd said, "I am pleased to share that we continue to make considerable progress across our focused markets. In Q2 FY25, we recorded a revenue growth of 9% over last year with a highest-ever EBITDA margin of 26.7%, driven by mix and other operational efficiencies. Our One-India business was impacted during the quarter due to changed seasonal pattern, however key chronic therapies in Branded Prescription business continued to grow faster than the market. Consumer health business grew at a strong 21% YoY.

According to the company's press release, "One India Business grew at 5% YoY. Branded Prescription business continued to outpace the market in key Chronic therapies. CHL delivered strong growth at 21% YoY. The business however, witnessed a historically slow seasonal growth in Acute category impacting both Branded Prescription and Trade Generics business."

▪ North America: Delivered quarterly revenue of $ 237 Mn up by 4% YoY supported by traction in differentiated portfolio.

One Africa:

Progressing on the journey of strengthening the Africa story, the North Africa business which was a part of Emerging markets and Europe is now merged with SAGA region which is renamed as One Africa. Momentum continues with overall revenue growth at 22%.

Emerging Markets and Europe:

Posted a robust revenue growth of 18% in USD terms, added the BSE filing.

Cipla Dividend History:

Cipla announced 26 dividends since August 6, 2001. In last 1-year, Cipla recommended an equity dividend amounting to Rs 13.00 per share.

Cipla Shareholding:

FII/FPI have increased holdings from 25.82% to 27.82% in June 2024 quarter. Number of FII/FPI investors increased from 1031 to 1103 in June 2024 quarter. Mutual Funds have increased holdings from 16.83% to 17.62% in June 2024 quarter. Number of MF schemes increased from 37 to 41 in June 2024 quarter. Institutional Investors have increased holdings from 50.25% to 52.76% in June 2024 quarter, according to Trendlyne.

Cipla Shares Performance:

The 52-week high price of Cipla Ltd shares on BSE is Rs 1702.00 per share (as on 09/10/2024) and 52-week low price is Rs 1165.10 per share (as on 23/11/2023), respectively. Cipla shares gained 13% in last 6-months, jumped 67% in last 3-years, and offered highest return of 243% in last 5-years.

Should you Buy Cipla?

Investec recommended buy call to Cipla with a price target of Rs 1,900.

Disclaimer:

The stock has been picked from the brokerage report of Investec. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.