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Cipla shares decline nearly 4% after Q4 earnings miss estimates

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The share price of Cipla fell nearly 4 percent on Monday after the firm's earnings missed analysts' estimates on all parameters in the March quarter.

Cipla shares decline nearly 4% after Q4 earnings miss estimates
The share price of Cipla fell nearly 4 percent on Monday after the firm's earnings missed analysts' estimates on all parameters in the March quarter.
The pharma company clocked a 72.2 percent year-on-year growth in consolidated profit at Rs 411.5 crore driven by operating performance. However, the profit was lower than Rs 559 crore that CNBC-TV18's analysts had estimated.
Consolidated revenue grew by 5.3 percent year-on-year to Rs 4,606.4 crore, lower than the estimated Rs 4,919.4 crore.
The stock fell as much as 3.8 percent to the day's low of Rs 870 per share on the BSE.
At the operating level, EBITDA grew by 25.7 percent year-on-year to Rs 796.2 crore and the margin expanded 280 bps YoY to 17.3 percent in Q4FY21.
"In India, the prescription business grew by 6 percent YoY and the sequential normalisation is in line with expectations. Expanded COVID portfolio is expected to see traction along with core respiratory products," Cipla said in its BSE filing.
Brokerages were mixed on the stock after the March quarter numbers.
JPMorgan said that the earnings were weak as US sales and margin disappointed. Goldman Sachs also noted that the Q4 missed estimates as the margin was impacted by shelf stock adjustments in the US and inventory write-offs.
However, Morgan Stanley has an 'overweight' rating on the stock with a target of Rs 949 per share. It said that the company continues to strengthen its base business in India, the US and South Africa.