Domestic performance, steady growth outlook driving up Cipla stock

Promising domestic sales, new launches in the US are keeping analysts positive

The stock of pharmaceuticals major Cipla has rebounded more than 18 per cent since its October lows. There were concerns earlier on the pace of domestic growth, given distribution and trade-related issues, subdued emerging-market performance in the June quarter, and regulatory issues at its Goa plant. The rebound in the domestic performance during the September quarter (Q2), however, has boosted the Street’s confidence in the stock. Analysts see more upside for the stock as the outlook for US markets also looks promising. Macquarie recently maintained its outperform rating on Cipla, with a target price of Rs 576, and the stock