Cipla gains after foreign brokerage upgrades to outperform

Cipla rose 2.48% to Rs 669.90 at 13:02 IST on BSE on buzz a foreign brokerage upgraded the stock to outperform citing strong Nexium sales.

Meanwhile, the S&P BSE Sensex was up 361.58 points or 1.33% at 27,466.97.

On BSE, so far 89,000 shares were traded in the counter as against average daily volume of 2.25 lakh shares in the past one quarter.

The stock hit a high of Rs 672 and a low of Rs 662.65 so far during the day. The stock had hit a record high of Rs 752.45 on 10 March 2015. The stock had hit a 52-week low of Rs 368.70 on 30 May 2014.

The stock had underperformed the market over the past one month till 8 May 2015, declining 11.23% compared with Sensex's 5.58% fall. The scrip had, however, outperformed the market in past one quarter, sliding 0.23% as against Sensex's 5.62% fall.

The large-cap company has equity capital of Rs 160.59 crore. Face valu per share is Rs 2.

According to the brokerage, Nexium profits will lead to strong earnings growth in the first half of FY 2016 and approval of generic Advair MDI in UK are strong near-term triggers of Cipla.

Cipla's consolidated net profit rose 15.3% to Rs 327.85 crore on 2.2% growth in net sales to Rs 2624.71 crore in Q3 December 2014 over Q3 December 2013.

Cipla is a global pharmaceutical company which uses cutting edge technology and innovation to meet the everyday needs of all patients.

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