Stock market analysts have maintained ‘buy’ rating on Cipla stock with an intraday target of Rs 231.

According to them, interested traders can purchase the stock around Rs 228 with a strict stop loss of Rs 225. If the stock market remains on positive track, the stock pricing becomes more attractive, and reach above Rs 232.
 
Shares of the company, on Thursday (Aug 07), closed at Rs 227.45 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 311262. Current EPS and PE Ratio stood at 9.27 and 25.13 respectively. The share price has seen a 52-week high of Rs 1465 and a low of Rs 515.10 on BSE.

The stock has great potential. It can still exhibit superb surge and it will achieve the target price as the company has robust growth plans and strong operating capabilities.

Cipla has got final approval from the US Food and Drug Administration (USFDA) to sell Ramipril capsules, in the strengths of 1.25 mg, 2.5 mg, 5 mg and 10 mg.

Ramipril is an angiotensin-converting enzyme (ACE) inhibitor, used to treat hypertension and congestive heart failure.

Moreover, the company registered a steady growth in its standalone net profit for the three months period ended June 2008, beating analysts estimation on net sales by about 12.74%.

During the quarter, the company’s profit zoomed 16.93% to Rs 1,400.40 million from Rs 1,197.60 million in the same quarter, last year.

The company posted earnings of Rs 1.80 a share during the quarter, recording 16.88% growth over previous year.

Net sales for the quarter rose 33.85% to Rs 12,071.20 million, while total income for the quarter rose 33.01% to Rs 12,241.40 million.

During the quarter, interest cost surged 4.46 times to Rs 36.60 million while depreciation cost arose 26.38% to Rs 382.30 million over previous year period.

The board of directors has recommended payment of dividend of Rs 2 a share (face value of Rs 2) for the year 2007-08 amounting to Rs 1.56 billion.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes Sun Pharma, Glenmark, Ranbaxy Labs and Dr Reddys.