Cipla gains 9% on better-than-expected Q1 results

Cipla shares jumped about 9% in early trade on July 27 after the company's profits for the April-June period exceeded Street's estimates. Several brokerages raised their price estimates for the stock in response to the company's strong results for the quarter under review.

Because the company's bottom line and top line for the quarter exceeded analysts' expectations in Q1, management increased its margin goal for the current fiscal year to 23% from the previous aim of 22%.

Furthermore, management provided a solid growth outlook for the future quarters, projecting outperformance in the India prescription business and generating a quarterly run-rate of $210-215 million in US sales. All of the aforementioned benefits combined to create a favorable impression of Cipla.

Source: Media Reports