Cipla Becomes Top Gainer In Nifty 50 As Kotak Institutional Upgrades To Buy
Kotak Securities upgraded the stock rating to 'buy' as it expects recovery in the domestic market, and healthy growth in the South African market.
Cipla Ltd.'s share price rose to become the top gainer on the NSE Nifty 50 index on Tuesday after Kotak Securities upgraded the stock rating to 'buy' from 'add'. The brokerage expects recovery in the domestic market, and healthy growth in the South African market.
However, Kotak Securities reduced the target price to Rs 1,725 from Rs 1,750 apiece. The current target price implied a 19.09% upside from Monday's closing price.
Kotak Securities estimates 9.5% reported earnings per share and compound annual growth rate over the period between financial year 2024 and 2027. A slew of US launches, expected domestic recovery, and healthy growth in the South African market will drive the EPS and CAGR, the brokerage said.
Cipla stock was bogged down by various factors, including increasing possibility of a pre–approval inspection for generic Abraxane, anticipation of a slightly subdued third quarter and recent promoter stake sale. Most of these concerns are already factored in the Cipla stock price, hence Kotak Securities upgraded the stock rating.
Kotak Securities attributed the domestic growth challenges to transient seasonal factors. Hence, the brokerage estimates gradual domestic recovery hereon and expects improved productivity to drive 9% India sales, and CAGR over FY24 and FY27.
Cipla Share Price Today
Cipla share price rose 2.39% to Rs 1,483.00 apiece. It was trading 1.97% higher at Rs 1,476.95 apiece as of 9:55 a.m., as compared to 0.60% decline in the NSE Nifty 50.
The stock has been rising for three sessions in a row. In 12 months, Cipla share price rose 20.94%, and 18.19% on year-to-date basis. Total traded volume so far in the day stood at 0.31 times its 30-day average. The relative strength index was at 44.58.
Out of 38 analysts tracking the company, 23 maintain a 'buy' rating, eight recommend a 'hold' and seven suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 9.4%.
