Valentine Day Stock Pick 2024: Trade Call By Sumeet Bagadia On Wednesday 14th Feb

Large-cap pharmaceutical firm Cipla Ltd. closed today on the BSE with a market valuation of Rs. 1,17,620.17 Cr. The firm operates in more than 80 countries and offers more than 1,500 healthcare products in more than 50 dosage forms and therapeutic domains. The company's shares have risen by 16.45% year to date (YTD) so far in 2024, but Choice Broking's Executive Director Sumeet Bagadia is bullish on the stock and has chosen it as his Valentine Pick for 2024, with a target price of Rs 1600 or 1660.

Cipla Share Price Target

Buy CIPLA @ Rs 1450 & add upto Rs 1415 for the target of Rs 1600/ 1660

CIPLA is currently trading at Rs 1450, moving within the range of 1420 to 1450 and showing signs of readiness for a breakout. The formation of new higher highs and higher lows suggests a potential upward movement, with projected targets at Rs 1600 and Rs 1660.

Importantly, significant support is evident around Rs 1415. Moreover, CIPLA is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, indicating a robust bullish momentum. The Relative Strength Index (RSI) stands at 66.8, confirming an upward trajectory and signalling increased buying momentum.

A prudent strategy involves considering buying opportunities during market dips, particularly around the Rs 1415 level. In summary, based on technical analysis and current market conditions, CIPLA appears to present a promising buying opportunity for those aiming at price objectives of Rs 1600 and Rs 1660, contingent upon the implementation of prudent risk management measures.

Cipla Financials

Cipla disclosed its third-quarter financial results for FY24 with a consolidated net profit of Rs 1,056 crore, a 32% jump as compared to the year-ago period when the net profit was Rs 801 crore. The company recorded total income from operations of Rs 6,544 Cr in Q3FY24 up by 14.2% YoY from Rs 5,728 Cr in Q3FY23. EBITDA jumped by 24.9% YoY to Rs 1,720 Cr in the quarter under review from Rs 1,377 Cr in the same quarter last year.

Umang Vohra - MD and Global CEO, Cipla Ltd said, "I am happy to announce results for yet another quarter which further established our strengths of our core business in India, North America, and South Africa. Our topline growth for the quarter was at impressive 14% YoY with strong EBITDA margins at 26.3%. One India business grew at a healthy 12% YoY backed by strong performance across Branded Prescription, Trade Generics and Consumer Health. In North America, we continue to scale newer peaks by posting highest ever quarterly revenue yet again at $ 230 Mn, supported by positive traction in key assets and base business."

"Our South Africa business further extended its momentum from last quarter by growing at 15% in local currency terms driven by strong execution across prescription, OTC and tender. Our focus continues on expansion in chronic therapies, growing big brands, global wellness as well as developing our R&D pipeline in respiratory and peptides. We will continue to focus on driving profitable growth across businesses," he further added.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.