Pharma Stock To Buy: UBS Sees 26.94% Rally, Buy Recommended For TP Rs 2060

Cipla Ltd shares declined 2.92% in last 1-week and 2% today. Brokerage firm UBS is upbeat on Cipla shares and recommended buy call with target price of Rs 2060 apiece. Last trading price of Cipla Ltd share on BSE stood at Rs 1622.85 per share. The company's market capitalisation stood at Rs 1,31,056.01 crore. Cipla on May 10 declared a final dividend of Rs 13 per equity share of the face value of Rs 2/- per equity share for the FY ended March 31, 2024. Record date for the dividend was August 2, 2024. Cipla shares gained 39% in last 1-year and zoomed 287% in last 5-years. Check details below:

Acquisition Update On September 25, 2024: Earlier, Cipla (EU) Limited, wholly owned subsidiary of the Company in UK, has entered into a definitive agreement on 25th September 2024 for purchase of entire 6.9124% equity interest of Jiangsu Xidi Pharmaceuticals Co., Ltd. (formerly known as Jiangsu Acebright Pharmaceuticals Co., Ltd.) held in Cipla (Jiangsu) Pharmaceuticals Co., Ltd., China ('Cipla Jiangsu'), subsidiary. Upon completion of the transaction, Cipla Jiangsu will become a wholly owned step-down subsidiary of the Company, according to the BSE filing.

Cipla To Consider Results On October 29, 2024: As per the regulatory filing of Cipla dated October 1, "pursuant to Regulation 29 of Listing Regulations, we wish to inform you that a meeting of the Board of Directors of the Company will be held on Tuesday, 29th October 2024 inter-alia to consider and approve the unaudited standalone and consolidated financial results for the quarter and half year ended 30th September 2024." In terms of the Company's Code of Conduct for Prevention of Insider Trading, the "Trading Window" for dealing in the securities of the Company is closed from Tuesday, 1st October 2024 till Thursday, 31st October dealing in the securities of the Company is closed from Tuesday, 1st October 2024 till Thursday, 31st October.

Cipla Shares Performance: The 52-week high price of Cipla Ltd share on BSE is Rs 1684.95 per share (as on 30/09/2024) and 52-week low price is Rs 1132.00 per share (as on 26/10/2023), respectively. Cipla's PE is 30.92 and ROE of 15.15. Cipla shares fell more than 1% in last 1-month, rallied 30% year-to-date, surged 42% in last 2-years, and jumped 69% in last 3-years. In last 5-years, Cipla shares rallied 287%.

Cipla Q1 Results: Cipla declared its EBITDA for Q1 at Rs 1716 crore, up 14%. EBITDA margin of Cipla soared to 25.6% for the April to June quarter from 24.1% declared in the corresponding quarter of last year. "Our One-India business continued on its growth trajectory during the quarter, led by branded prescription which grew at 10 percent. Our concentrated focus and execution in differentiated portfolio have further strengthened the US business which yet again posted all-time high quarterly revenue at $250 million. In South Africa, we recorded a solid growth of 19 percent YoY in local currency terms, led by private market. Going ahead, focus will be on growing our key markets, further building our flagship brands, investing in future pipeline as well as focusing on resolutions on the regulatory front," said Umang Vohra, MD and Global CEO, Cipla Ltd.

Shareholding Pattern: Promoters have decreased holdings from 33.47% to 30.91% in June 2024 quarter. 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. LIC has a stake of 3.53% in Cipla with 28,423,183 shares of the company.

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