Home World Business Pharma shares in focus; Cipla, Sun Pharma surge over 5%

Pharma shares in focus; Cipla, Sun Pharma surge over 5%

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At 02:59 PM; Nifty Pharma index, the largest gainer among sectoral indices, was up 3.6% as compared to 1.01% rise in the benchmark Nifty 50 index

SI Reporter  |  Mumbai  Last Updated at February 8, 2018 15:10 IST

Shares of pharmaceutical companies were in focus with the index gaining nearly 4% on back of strong rally in and Cadila Healthcare post their December quarter results. At 02:59 pm; index, the largest gainer among sectoral indices, was up 3.6% as compared to 1.01% rise in the benchmark Nifty 50 index. Among the pharma index, and Sun Pharmaceutical Industries have rallied more than 5% each, while Cadila Healthcare, Dr Reddy’s Laboratories and Divi’s Laboratories up in the range of 2% to 4% on the National Stock Exchange (NSE). and Morepen Laboratories from the non-index stocks rallied more than 10% each, Sequent Scientific, Advanced Research Company (SPARC), Hester Biosciences, Hikal, Ajanta Pharma, Biocon and Ipca Laboratories up between 4% and 7% on BSE. Among the individual stocks, rallied 8% to Rs 617 on NSE in intra-day trade, after the company reported a healthy performance in December quarter (Q3FY18) with EBITDA (earnings before interest, tax, depreciation and amortization) margins improved 230 bps to 20.9% from 18.6% in year ago quarter and 19.7% in previous quarter. EBITDA margins have been improving continuously driven by cost optimization across all spend lines despite R&D getting stepped up to 7.6% of sales during the quarter, said in a press release. Cadila Healthcare soared 6% to Rs 418 after the company reported a better than expected 68% year-on-year (YoY) rise in consolidated net profit at Rs 5.43 billion on back of strong operational and revenue performance.

The total income from operations grew 38% YoY at Rs 32.60 billion, while EBITDA profit increased 108% at Rs 8.41 billion over the previous year quarter. Analysts on an average had expected net profit of Rs 5.19 billion and operational revenue of Rs 31.37 billion for the quarter. hits a 52-week high of Rs 294, up 16%, extending its previous days 6% surge, after the company said that its board has approved the buyback proposal at a price of Rs 350 per equity share through tender offer. “The board approved the buyback of 3.43 million equity shares of the Company at a price of Rs 350 per equity share for an aggregate amount not exceeding Rs 1,200 million from the equity shareholders of the Company on a proportionate basis through the “Tender Offer” route,” said in a regulatory filing. Meanwhile, the pharmaceuticals company reported a strong 94% jump in net profit at Rs 427 million in Q3FY18 quarter against Rs 220 million in the corresponding quarter of previous year.

First Published: Thu, February 08 2018. 15:02 IST

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