Cipla drops after unfavorable ruling by Supreme Court

Cipla fell 2.01% to Rs 583.10 at 15:13 IST on BSE after Supreme Court decided in favour of Union of India in an appeal filed against the company and others arising out of the judgement of the Allahabad High Court.

The announcement was made during market hours today, 21 October 2016.

Meanwhile, the S&P BSE Sensex was down 54.24 points or 0.19% at 28,075.60

On BSE, so far 1.53 lakh shares were traded in the counter as against average daily volume of 2.08 lakh shares in the past one quarter. The stock hit a high of Rs 596.50 and a low of Rs 570.30 so far during the day. The stock had hit a 52-week high of Rs 704.75 on 29 October 2015. The stock had hit a 52-week low of Rs 458.25 on 25 May 2016. The stock had outperformed the market over the past 30 days till 20 October 2016, falling 0.86% compared with 1.32% fall in the Sensex. The scrip also outperformed the market in past one quarter, gaining 14.5% as against Sensex's 1.17% rise.

The large-cap company has equity capital of Rs 160.84 crore. Face value per share is Rs 2.

Cipla said that Supreme Court has today, 21 October 2016 decided in favour of Union of India in an appeal filed against the company and others arising out of the judgement of the Allahabad High Court. The other petitions filed in the Bombay High Court on completely separate sets of grounds relating to alleged overcharged amounts are pending and are still subject to the interim stay granted by the Supreme Court in July 2016, Cipla said. The ruling was with reference to pending legal cases relating to alleged overcharging in respect of certain drugs under the Drugs (Price Control) Order, 1995.

On a consolidated basis, Cipla reported 43.7% fall in net profit to Rs 365.24 crore on 6.9% decline in net sales to Rs 3499.81 crore in Q1 June 2016 over Q1 June 2015.

Cipla is a global pharmaceutical company

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