Cipla shares zoomed 9% in early morning trade after the business’s earnings for the April-June period exceeded the Street’s expectations. Numerous brokerages raised their price targets as they praised the company’s solid numbers for the quarter under review.

As the company’s Q1 bottom line and topline topped analysts’ estimates, it also encouraged the management to increase its margin guidance for the current fiscal to 23% from the last target of 22%.

Moreover, the management rolled out a robust growth outlook, forecasting outperforming industry growth in the India prescription business and bringing a quarterly run-rate of $210-215 million in US sales. 

At 10.50 am, shares traded 8.75% higher at Rs 1,162.05 on the NSE.

Macquarie also maintained Cipla’s decision to raise its margin guidance, giving an ‘outperform’ call on Cipla with a price target of Rs 1,050.

Nomura liked the management’s conclusion to raise its margin guidance for FY24 while conceding that Cipla’s earnings came ahead of the firm’s approximations. To capture that, the firm also elevated its FY24/25 EPS estimate for Cipla by 3% each. The firm also raised its price target for the stock to Rs 1,229 while retaining its ‘buy’ rating.

JP Morgan also raised its target price to Rs 1,210 while upholding its ‘overweight’ call on the drug maker. The firm perceives a robust outlook for Cipla’s key marketplaces, including calculations of a market-beating development for its India business. It also believes a strong pipeline of complex assets will drive Cipla’s growth beyond FY25 in the US market, along with a ramp-up in the market share of prevailing products.