Cipla Share Price Surges 7% To Hit Record After Q3 Profit Meets Estimates

Shares of Cipla Ltd. surged 7% to hit record highs on Tuesday after its third-quarter profit and revenue rose, meeting analysts' estimates.

The drugmaker's net profit jumped over 32% year-on-year to Rs 1,068.4 crore in the quarter ended December, according to an exchange filling. The analysts' estimate polled by Bloomberg predicted a net profit of Rs 1,058.12 crore.

• Revenue up 13.7% at Rs 6,603.8 crore. (Bloomberg estimate: Rs 6,522.2 crore).

• Ebitda rose 24.2% to Rs 1,747.5 crore. (Bloomberg estimate: Rs 1,598.8 crore).

• Margin increased 223 basis points to 26.46%. (Bloomberg estimate: Rs 24.5%).

• Net profit rose 32.3% to Rs 1,068.4 crore. (Bloomberg estimate: Rs 1,058.12 crore).

The company's investment in research and development stood at Rs 400 crore, or 6.1% of sales. It was 10% higher year-on-year. It has a net cash position of Rs 7,143 crore as on Dec. 31.

Shares of Cipla rose as much as 7.05% before paring gains to trade 6.51% higher at 9:57 a.m., compared to a 0.61% advance in the NSE Nifty 50.

The stock has risen 31.95% in the last 12 months. Total traded volume so far in the day stood at 9.8 times its 30-day average. The relative strength index was at 72, indicating the stock may be overbought.

Of the 40 analysts tracking the company, 29 maintain a 'buy' rating, five recommend a 'hold', and six suggest a 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 31.9%.