Stock Fundamentals

Reality Check - Cipla

Dhuraivel Gunasekaran | Updated on November 11, 2018 Published on November 11, 2018

Cipla needs a booster shot

The stock of pharma major Cipla has declined nearly 18 per cent over the last month. The fall in the share price has been steep, after it registered a poor show (year-on-year) in the recent September. Cipla reported a 11 per cent decline in its consolidated net profit in the second quarter, to ₹377 crore, as against ₹423 crore in the same quarter last year. The consolidated net sales for the quarter were ₹4,012 crore, down 2 per cent from ₹4,082 crore in the same period last year.

Sales from India, which contributed around 41 per cent of Cipla’s overall revenues, remained almost unchanged Y-o-Y at ₹1,644 crore. The company still retains its No 1 position in respiratory, urology and paediatrics.

Sales from North America, which accounts for 19 per cent of the overall sales, grew 25 per cent Y-o-Y, driven by product rationalisation and ramp-up of launches. The company may have to do really well in the second half of this fiscal for markets to view the stock favourably.

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