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Tuesday, August 16, 2016

Cipla Share Price Rises 3% Despite Missing Q1 Estimates

CiplaCipla share price soared nearly 3 per cent to hit intraday high of Rs 531.10 today even after the company posted lower-than-expected net profit in the June quarter.
Cipla's net profit came in at Rs.365 crores, as compared with expectations of Rs.376 crores. The pharma company’s net profit on an annual basis slumped 44 per cent. A sharp rise of 40 per cent in the research and development (R & D) expenses also impacted the profit. The Mumbai-based pharma company's profit numbers were affected by the government's measures to cut down on drug prices. 
During the June quarter, the pharmaceutical company’s operational profit stood at Rs.611 crores as compared to Rs.1,035 crores during the same quarter a year ago. As of 10:06 a.m., Cipla share price traded 1.11 per cent up at Rs.521.75, outperforming the Nifty that was trading on a flat note.
Meanwhile, market experts and stock analysts have upgraded the pharma company from underperform to outperform. They see favorable risk-reward ratio at current levels. The analysts also expect earnings growth to be strong in FY18-19. On a year-on-year (YoY) basis, Cipla shares are down 18 per cent. 
Currently Cipla share price is trading 2.51 per cent higher at Rs.528.90 on NSE. It opened at Rs.510.20 from a previous closing of Rs.515.95. According to the Dynamic Levels market researchers and stock analysts, the scrip belongs to the top 500 group out of the 1700 shares listed on NSE. The share is safe for investments as per the analysts. 
To acquire information on the support and resistance levels of the stock, please visit Cipla share price history. 

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