Nirmal Bang, one of the leading equity research-cum-broking house, has recommended a buy call on Cipla with a target price of Rs 270-290 in its June 05, 2009 research report.

In latest research report, the firm said that Cipla is clearly a buy, so investors can accumulate Cipla on declines. In addition, the firm has suggested a support level for the scrip at Rs 217 and resistance level at Rs 258.

Today, the scrip of the company opened the day at Rs 236.50 on BSE, marginally up compared to its previous close of Rs 234.15. Current EPS & P/E ratio stood at 9.88 and 23.66 respectively. The share price has seen a 52-week high of Rs 255.50 and a low of Rs 146.40 on BSE.
 
The World Health Organization (WHO), in May 2009, included Cipla’s Oseltamivir 75 mg capsules marketed as `Antiflu` in the category of prequalified medicinal products (PMP).

During the last month, Cipla bagged tentative nod for tenofovir disoproxil fumarate tabs, 300 mg, from USFDA under the President’s Emergency Plan for AIDS Relief (PEPFAR) program.

In its standalone net profit for the quarter ended March 2009, Cipla recorded a substantial growth of 40.94% to Rs 2,529.20 million from Rs 1,794.50 million in the same quarter previous year.

The company’s net sales surged 21.80% to Rs 13,667.40 million, whereas total income during the period increased 18.87% to Rs 13,821.90 million.

The company’s EPS during the period surged 41.30% at Rs 3.25 a share.

During the quarter, the company’s operating margin rose to 25.55% as against 14.80% in the previous year period.

Interest cost increased 2.91 times to Rs 132.70 million whereas depreciation cost rose 51.79% to Rs 556.60 million over previous year period.